Simultaneous Release at
Good day forex trading koalas.
In the previous review, we noted that while the equities reacted negatively to the China interest rate hike, the EUR/USD did not appear to have much effect. It drifted upward towards the 1.32 region for a test of the resistance.
Looking at the EUR/USD chart above, we noticed a break of the 1.32 resistance. Having said so, the bullish momentum soon met with resistance at the 1.3285 region and had since then headed back to the 1.32 line. I love the way how these red lines help with my assessment of the EURUSD.
Earlier, the US S&P/CS Composite-20 HPI was released. It is an index of property values and hence many investors monitor it as a gauge of the housing market. It clocked in much lower than expected and this probably shocked investors. Housing is always seen as one of the main component for a healthy robust economy and hence such depressing data tends to dent sentiments. With the foreclosures happening, home prices will probably remain under pressure for sometime.
Together with the earlier China Interest Rate hike, this negative release may kick start risk aversion in the currency pair and hence we may head back towards the 1.3 – 1.32 channel.
More economic data is due tomorrow such as the German Prelim CPI.
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