EUR/USD Daily Review 28 Jan 10

Hellllooo Koalas!

One more day to go and it is FRIDAY

Let’s do some EUR/USD REVIEW !

Once again I LOVE IT WHEN MY CHART WORKS! The EUR/USD tested 1.3940 and backs off for now. Seriously, if you are not in love with the koala site, love it now! I mean come on, where can you get a shameless boasting koala and charts that work more than half the time? Yay!

Looking at the S&P 500, we see signs of a struggle as the index flips between being bullish and bearish.

Oil remains at $72+. I am paying close attention to it. Should it fall below $70, we may see a new wave of recovery breakdown. After all, oil can be a clue to an economy’s health.

Gold values at $1091, showing a lack of will to climb above $1100 for now.

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The US Unemployment Claims came in worst than expected today. Where is the panic you ask? Folks, remember that in Forex, we need to interpret releases in context. While the claims came in worst than expected, it is still lower than the previous release. Although this may not be a good clause for celebration, it definitely beats the previous report that i mentioned about a cut of 10 000 jobs in US Verizon right?

Furthermore, the statement by the Feds seems rather upbeat. Investors looking out for clues may see this is an indication of better days to come. President Obama speech on an action plan with regards to the jobs situation brought more renewed positivity.

Unfortunately, the push below the strong line of 1.4000 by the EUR/USD may suggest that the bears of the current parade may not be giving up this party without a fight. Problems with regards to Greece and the cohesion of the Eurozone remain as threats to a positive revival.

We have up next numerous releases and events, including the US Fed Chairman Nomination Vote and US Advanced GDP. No doubt very crucial events and great potential for crazy spikes. Be careful.

Bullish comeback may bring us to 1.4000/80.

If the bears decide to give no quarter, 1.3940 may be tested again followed by 1.3880.

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A reader wrote to me with regards to proper money management and argued that 2% is rather low. 10% will be more “reasonable”. SERIOUSLY ARE YOU POSITIVE THAT YOU WILL HIT THE HOMERUN AT LEAST ONCE IN TEN TIMES?

I honestly say i cant.

Consider in spreads, times when you panic and close positions early. The few pips you took profit from before the price turns on you while the loses come in packages of full stop loses. Can you?

PLEASE PLEASE PLEASE. For the love of your OWN money ( Seriously, i do not benefit when you benefit ) 2% is more reasonable. Read The story of a margin call. Tom.

Forex is never a quick road to the millionaire club. Proper money management is required so that you MAY survive long enough and learn from your mistakes.

Folks, you have me the old koala who had MR margin call at his door before. And believe me, the experience is no where near pleasant.

Trade safely please.

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