Good day forex trading koalas!
Yes. Once again i apologize for the missing review yesterday. I fell sick. While i am not as good yet, my commitment remains. Here comes…….
In the previous review, things were pretty uncertain with regards to the full extent of the Euro Bank stress test results. Things could go either way.
Looking at the EUR/USD chart above, a small bullish run developed but is now resisted by the line of 1.3.
The S&P 500 is currently at 1115. This suggests that the sentiments may be good and the US dollar’s role in risk aversion may be diminished for now.
Oil is at $78+ and is nearing $80.
Gold has dropped to $1167+. Good sentiments may be encouraging a sell off of the precious metal for riskier assets.
These couple of days were generally full of positive data releases.
New Home Sales in the US were better than expected on Monday. This is a good release as the end of the housing tax credit brought apprehension to many. As home sales starts a chain of economic activity, sentiments were brighten.
Today also brought a number of better than expected economic data. Majority were from the Euro Zone and this definitely helps to suggest that the worst may be over.
While all is good so far, the US CB Consumer Confidence just came out worst than expected. This is a survey of households and many investors give importance to this data. This is probably the reason why the EUR/USD is dipping for now.
Koalas, once again i will like to warn you again. Remember i said that trading decisions nowadays seem to be acted upon emotionally rather than fundamentally. While the going is good for now, give a few more of the negative releases and risk aversion will take over faster than you can say the phrase “risk aversion” ! . . .
Ok, i admit i am over reacting again but you get my point! Such emotional knee jerk reactions may catch you off guard and wipe your positions. After all, the US and the Euro Zone are both facing a fragile recovery for now.
More important news tomorrow, including the German Prelim CPI and US Core Durable Goods Orders.
My eyes are so dry that they are burning ! Makes me feel like the Hell Rider. You know the flaming skull? By the way, are you folks Star Trek fans? I love it. Not trying to start flame wars here but Star War seems too “drama” for me. Beam me up scotty!
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