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Good day Friday Koalas!
Are you ready to cash the pips for beer?
The currency pair received a late week boost, testing the resistance of 1.3680.
The S&P 500 shot back up above 1100 yesterday and is currently holding so. Should the week close above 1100, it will be the second week in a row. This suggest positivity.
Oil is currently holding well, trading around $77.
Gold currently values at around $1114.
We had a mixed release of economic data today but of concern to me, would be the US Existing Home Sales. Suffering a double setback of lower than expected and lower than the previous release. This suggest that the recovery may be stalling as people hold back from their home purchases. Furthermore, home sales spur economic activities. The lesser of it, the more negative impact may be expected to surface.
Now why did the EUR/USD shoot up to the top?
There were reports stating that Germany may be coming to Greece’s aid by purchasing Greek bonds through its state owned lender KfW Group. This probably eased risk aversion as investors were relieved of their apprehension towards the Greek deficit crisis.
Having said so, do remember that the root of the problem must be solved. Greece must take concrete actions to reduce the deficit. It will be a tough job though as the strikes may hamper progress.
With the weekend upon us, watch out for profit taking.
Bullish pressure may move above 1.3680.
If the sentiments turn cold, bearish pressure may see us testing 1.3600.
Stay tuned for the EUR/USD Weekly Review over the weekend.
Ah koalas! The weekend is here. I am going to catch up on my sleep and do a few articles. Probably not too much of play for me. L4D2 practice is due though. So many things to do but so little time. Lets get started now!
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