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Good day forex traders.
This is the start of a brand new trading week and let us all target to finish it green
Last Friday, we saw a former adviser to the China Central Bank said that the current Euro Crisis probably would not affect China’s foreign reserves diversification plans much. The Euro-Zone would probably emerge from the crisis and regain stability. While this created some bullish relief, the rating cut of Spain by Fitch brought risk aversion again and sent the EUR/USD to a dropping close.
Looking at the EUR/USD, we can see slow activity. This is probably due to the bank holiday in US.
With the US markets closed, we do not have S&P 500 data.
Oil in the meanwhile hovers around $74.
Gold creeps upwards, probably nudged along by demand due to risk aversion.
Do remember that we do not have the market in full force today and hence we may have yet to see the full impact of the rating cut by Fitch on Spain.
A reported stated that the economic confidence in Europe worsened in May and we probably could see it coming with all the budget deficit crisis fire fighting. With Spain and Italy conducting budget cut measures, investors may see this as a subtle sign of budget problems.
Tomorrow gives us German Retail Sales, Unemployment Change and Euro Unemployment Rate. Investors will be watching for clues to the Euro Zone’s economic health. US’s ISM Manufacturing PMI which deals with the manufacturing industry conditions will be a data to look out for too. You can find the list of the various economic releases in the Economic Calender below.
From a technical point of view, the EUR/USD remains capped by the resistance of 1.2330. A break will see 1.2400 next. Any bearish momentum may see 1.2200. The H4 trendline remains intact.
Time flies when you are doing something you like! Everyday i come home from my crazy day job and switch on my PC. Looking at the charts, reading articles, writing for you folks and interacting with you folks. The next moment, Ms Sleep is screaming at me. LIKE NOW. Haha.
( Oh yes. i am not having Monday blues because day job was not very crazy today. Hope yours was/will be great ! )
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