Simultaneous Release at
Good day forex trading koalas!
A beautiful day with a beautiful weather and a not so beautiful.. HEADACHE !
Yesterday we noted a day with beautiful data releases. Investors were inclined to believe that the worst may be over. The only thorn was the US CB Consumer Confidence which came out worst than expected. A short bound of risk aversion emerged but that was rather short lived. I warned again that trading decisions nowadays seem to be acted upon emotionally rather than fundamentally. Therefore plan your trades well and not be caught off guard when the sentiments shift.
Looking at the EUR/USD chart above, the picture is pretty clear. Ranging action is on.
The market is still looking for a direction and the equities market today is mostly red.
While the German Prelim CPI came in just about right, the US releases generally did worst than expected. Core Durable Goods Orders were down, triggering fear in the US economy. This is probably the reason why the EUR/USD is ranging while equities are down.
Observation these days seem to show a few typical scenarios which i will like to share with you.
This is our usual risk version.
The last scenario seems to be the “newest thing in town” as we start to see more and more negative US data dampening the US outlook. Now that the Euro Zone crisis is apparently softening, folks are starting to focus on the other problems of the market. The US has a MASSIVE deficit and hence a likely candidate for scrutiny.
Yesterday i mentioned that 1.3 is a strong line and indeed it seems so. The EUR/USD has been ranging around it for hours, unable to decide on a direction. This is like how i sometimes cannot decide if i am a koala or human ! LOL
The FOMC Beige Book will be released later and hence do be careful. Tomorrow brings us economic data such as the German Unemployment Change and the US Unemployment Claims. Both are highly sensitive issues.
If only i can change a new head. My headache is driving me crazy !!!!!!@#$#!
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