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Good day forex trading koalas.
One day before Friday and you know what this means. It is time to evaluate your positions and consider the risk of leaving positions over the weekend. While not frequent, forex gaps do happen and if you are caught by it while being excessively risked, your margin account may say goodbye!
Yesterday saw the US New Home Sales turned out worst than expected, adding more fuel to the “OH THE US IS IN DEEP TROUBLE” bonfire. The S&P 500 also hovered dangerously close to the 1000 mark. A dip below it might trigger more bearish momentum.
Looking at the EUR/USD chart above, there seems to be a mild bullish momentum developing.
The S&P 500 is slightly above 1050. This is a critical region as a fall below 1000 sets us back by a year.
Oil climbs slightly higher for now.
While gold has fallen in value for now, $1239+ remains an elevated state probably caused by risk aversion towards the crumbling recovery.
The US unemployment claims came out slightly better than expected. While this may have a positive effect on the negative sentiment towards the US economy, the fact remains that unemployment in the US remains a crucial problem. With the unemployment rate close to 10%, the US economy definitely has much more healing to be done.
Having said so, i always warned and i will do so now again. The market these days seems to be making their trading decisions emotionally rather than fundamentally. This adds an additional layer of complexity to the trading strategy.
Ah now what strategy works probably most of the time? Yes. Proper money management
Tomorrow’s data cabinet brings us various economic releases including the US Prelim GDP. Besides that, Fed Chairman Bernanke is due for a speech and hence watch out for unusual price actions.
Have you heard of the TV series Fringe before? I love it and sometimes i wonder if those fringe sciences do really exist? Just like does Area 51 really exists? Ah the Agent Mulder in me is calling out. LOL
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