Simultaneous Release at
Good day forex trading koalas.
Today is day two and i hope everyone is doing fine so far.
Yesterday we saw the EUR/USD tested the support of 1.2645. I also highlighted a report that mention the fragile condition of the US housing market. The end of the tax credit in April seeks to threaten the housing market and in a bigger picture the US economy.
Looking at the EUR/USD chart above, we can see an extremely bullish candle that cut across the 1.2645 line. It stops right at 1.272 and once again gives me the opportunity to boast.
I LOVE IT WHEN MY CHART WORKS!
The S&P 500 is currently facing bearish pressure and is at 1050+.
Oil is currently at $72+. This is crucial. If oil falls below $70, it may indicate a breakdown of the recovery.
Gold remains elevated at $1225+, suggesting risk aversion at work.
The US existing home sales came out much worst than expected. I mentioned yesterday the housing activity helps stimulates the economy in general and hence is a closely watched data. This together with the poor employment market may well bring the US recovery down to it’s knees. With this dismay result, investors went running for the woods up in the Euro Zone. Yes. Indeed what we are witnessing now is a knee jerk reaction flight away from the US Dollar.
On the contrary, the Euro Zone gave us mainly positive data. Having said so, the Euro Zone has it’s own problems. As i mentioned often, the theme of the market these days seem to be focused on punishing the weaker economy and so pay close attention to the economic data.
Tomorrow bring us crucial economic data. We have the likes of the German Ifo Business Climate and US new home sales.
Trade safely and always remember that forex is not just about choosing up or down.
I had a very bad day at work and i am going to sleep it off. Mental drain can be as equally demanding as the physical version! Good bye and i’ll see you soon.
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