Good day forex trading koalas,
Today is midweek and you know what that means … Friday will be here soon.
I hope everyone is green with profit as of now. If you are not, you still have time and please do not trade with your emotions!
Yesterday, we noted that the US existing home sales came out a disappointment. As housing activities help stimulate the general economy, a poor result brought about risk aversion. Investors were worried about the US economy and a knee jerk flight away from the US Dollar was seen. While the Euro Zone gave us mainly positive data, the Euro Zone crisis is not exactly over and as the theme of the market these days seem to be focused on punishing the weaker economy, it is crucial to pay close attention to the economic data.
Looking at the EUR/USD chart above, we can see numerous play on the various support and resistance lines. This call for me to shamelessly brag again ! I LOVE IT WHEN MY CHART WORKS
The S&P 500 is currently below 1050, a victim of negative sentiments.
Oil is currently at $71+. Should it fall below $70, we may be witnessing a setback of the recovery as oil can be a clue to the global economy.
Gold is up at $1243+. This elevation of price despite a strong US Dollar suggests that risk aversion is strong as gold is a popular investment during times of economic trouble.
I mentioned that the US New Home Sales would be an important data to watch out for and indeed it came out lower than expected. This remains an anchor weighting down the US economy. Together with a poor employment market and mounting deficits, the US is fast losing it’s appeal as a prime choice for investments.
The German Ifo Business Climate came out better than expected but the current US condition acts as a dampener to the otherwise positive news.
An interesting and critical fact to note is that the S&P 500 hovers dangerously close to the 1000 mark. A fall below it will set us back to a year ago and opens up further room for dips. Not a situation we will want to be in.
Tomorrow brings us a number of economic releases from both the US and Euro Zone. The US Unemployment Claims will be released and being a touchy subject, any adverse result may further spur the current risk averse situation.
Remember i said that i had a bad day at my crazy work yesterday? I developed a migraine after finishing the article and it lasted till now! Arrghh. This is no way a koala should suffer
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