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Good day forex trading koalas.
Today is day two of the week and we must target to end the week in the green
Yesterday i mentioned that the EUR/USD was approaching the 1.32 line. It was probably an important line and caution was advised.
Looking at the EUR/USD chart above, the bullish momentum for this currency pair is rather strong for now. While the 1.32 line was breached momentarily, the EUR/USD is currently testing the line as a support, suggesting the “magnetic” pull of it. As usual, support and resistance lines are never a single pip.
From a monthly perceptive, the S&P 500 bounced from the early Jul low and is now around an important resistance.
Oil is above $80 and if remains so, may indicate a new era of economic recovery. Oil can be a clue to global economic conditions at times.
While gold is higher, this is probably due to the weakening US Dollar rather than any risk aversion.
Fed officials including Bernanke displayed apparent optimism yesterday. The idea of not having the need to push through more stimulus support for the economic probably contributed to the positive momentum.
Areas to be careful on are the housing and labor markets.
Indeed so, the pending home sales came out worst then expected and is probably causing this push towards 1.32 again. If you remembered, i previously discussed the possibility of extreme aversion towards the US economy causing the fall in US dollar value. Be on a look out for that. The US data for today was mostly negative.
Tomorrow brings us important data such as the Euro Zone retail sales and US ADP Non-Farm Employment Change.
Not to forget is Friday’s margin call event THE US NON FARM PAYROLL !
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Trade safely !!
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