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With the New Year almost upon us, things are definitely getting interesting.
As i mentioned earlier, the low volume season probably turned the currency pair into a pinball at the mercy of various news and economic reactions and technical levels.
S&P 500 plays along in a pinball game of it’s own, hitting the support of 1120 before it bounces back.
Oil remains slightly bullish and is currently at around $78.
Gold in the meanwhile continues to be sold in light of all the general optimism of the economy and perhaps also due to year end closure profit taking. It is currently slightly below $1090.
Now you koalas who have been following the news and economic releases diligently will know that the US Chicago PMI came in higher than expected and thus the bullish run of the US Dollar we are seeing now.
Hey hey hey. What about the S&P 500 you ask. Shouldn’t positive sentiments bring that up too?
Ah ha! This is the ingenuity of the market. Risk averse folks are probably closing off their positions in light of the upcoming holiday and the GMAC problem. There are reports stating that the home and auto lender is in discussions with the US government for a third bailout. Something investors probably won’t like to hear. This serves to remind us that the 2008 financial crisis is not really over yet. Remember, you heard it first here at TheGeeKnows.com
The relationship of the S&P 500 and the EUR/USD has became rather tricky these days and hence please be extra careful.
We have not come to the end of the economic releases as we still have unemployment claims for the US tomorrow. Watch out for that. Jobs are definitely important to an economy and you can read my previous article about the unemployment crisis in the US to find out more. Besides that, most of Europe goes on holiday tomorrow too. Probably extra low volume conditions to be expected.
Bullish comeback may bring us to test 1.4325 / 62 while a bearish push may drop towards 1.4260/00.
My Monday blues are coming back! Vacation leave ends on Sunday. Be prepared for nasty articles on Mondays again ok? L O L Alright. Run along and harvest some pips but please protect your profits and trade safe.
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