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Good day forex trading koalas.
I hope you had a great weekend.
Last week ended almost a doji. Towards the end of the week, sentiments became weak as concerns with regards to the Euro deficit crisis mounts and the US continues to display poor performance in the housing and employment sectors.
Looking at the EUR/USD chart above, the pair has been bearish since early trading. It is currently held up by the strong line of 1.2330. I LOVE IT WHEN MY CHARTS WORK!
S&P 500 remains tight as uncertainty surrounds.
Oil is around $78. As oil can be a clue to the global economy’s health, the recent stall in it’s price may be a sign of hesitation.
Gold climbs higher at $1258+. Exceptional demand may indicate risk aversion as gold is a popular investment during times of uncertainty.
The G20 meetings came and went. Although the countries agreed on the need to tighten up the financial processes, concrete agreement remains elusive. The markets know this and hence the somewhat sideways trading.
A report mentioned that from correlation observations, it is apparent that the markets are reacting nowadays mainly based on emotional events rather than fundamental points. This makes trading tricky and unpredictable, something we see with the numerous spikes.
On a darker note, a report stated that the states in the US are facing a budget crisis. Budget holes are too huge and have the potential to run amok. The states need to cut back spending and increase revenues in a fashion similar to Greece and Spain. I always warned about this and this is something we need to pay close attention on.
Among tomorrow releases comes the US CB Consumer Confidence, a leading indicator of consumer spending that is core to the general economy.
From a technical point of view, if the strong support of 1.2330 fails, 1.23/1.22 may be next. If the bulls stage a comeback, we may see 1.24/1.244. Do note that support and resistance lines are never a single pip.
Ok. Monday came and went. Had a crazy day at work but hey at least i am not falling asleep on my keyboard …yet! Hope your Monday will be a great one.
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