EUR/USD Daily Review 23 Nov 09

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MONDAY BLUE !

and to top it up, add in a side order of cough and upsize the aching body!

Yes i have not recovered from my cough. duh.

Consolation of the day? I hopped on to the train north since early Asian trading thanks to my trusty 3 koalas of The Koala System ( Actually they are 3 moving average indicators but i like to call them koalas ! )

Our friend the S&P 500 certainly did not want to be left out and it joins the currency pair north too. Currently at 1110+, it tests the upper resistance again and hence monitor closely if it breaks up to the north or settles for more ranging action again as emphasized by my black line.

Oil our top ranging commodity, once again approaches the upper resistance at $79+ to add on weakness for the Us Dollar.

Gold emerges as the winner again! Clocking in at a record high of $1170+, it is probably packing quite a punch towards adding on to the weakness of the US Dollar. If it interests you, read my forex education article on the clues that can we seek from gold in terms of the economy and forex.

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US existing home sales rose more than 10% today! While this may be good for the economy, ( Read here to find out why home sales is good for the economy ) these sales may be sparked by the stimulus measures and hence drop when measures are withdrawn.

Nonetheless it seems to be fueling the risk seeking theme for the day as prices attributed to higher yielding instruments and currencies continue to test resistances.

A word of caution though. German Ifo Business Climate and a few US important economic releases like the preliminary GDP, are due tomorrow and we may see folks locking in profits sooner than expected. ( Prices may ease off due to this ) Furthermore, we may get crazy mambo jumbo spikes should the releases be significantly better or worst than the forecast.

A side note on the technical aspect of the charts, both EUR/USD and S&P 500 displays ranging trails and hence i am not ruling out the possibility of some movement down from the current price region.

Bullish momentum may see us flying towards 1.5060+ while a breakdown in the ” i love risk ” party may see us dropping to 1.4960-40+, moving on to 1.4910+.

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Are you happy Mulder is safe and sound? I am. I trust him to bring me insights into the markets although sometimes he gets carried away and tries to sell me the alien forex idea.

How are the xmas preparations coming along in your country? I am starting to see xmas lights, trees and hearing xmas carols in the shopping malls. I want to put a sock! I hope santa gives me a koala! Yay!

Trade safe and try to forget today is a Monday ok? ( If you manage to do that, be sure to teach me how! )

Read more Forex Articles and Views by The Koala at www.thegeekknows.com

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