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Who loves a Friday say I.

Finally the weekend is coming and soon we can start dreading the upcoming Monday. Yeah !

We had our monthly free entry no restrictions bound margin call party. The Non-Farm Payroll !

After testing the previous high yesterday, Non-Farm Payroll came and took the breath ( and for some money ) away.

The S&P 500 while making higher highs as circled, remains rather drawn to the 1100 level. This seems to suggest that the market is not quite ready to move on to the next level yet.

Oil is currently hangs around $77+, earning the award of one of the most boring commodity for now.

Gold our “winner” took a punch as the speculators probably switched their loyalties to the US Dollar as a result of the better than expected Non-Farm Payroll. It currently licks it’s wounds at around $1170+.

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Today looks like a fundamental day to me!

You see, these days when the news is bad in the US, the US Dollar usually strengthen due to risk aversion. On the other hand, when data is good, the US Dollar weakens as folks move on to seek higher yields.

Today however sees a better than expected US data and this resulted in the US Dollar strengthening! Back to the basics now. When something is good in the country, the country’s currency usually strengthen due to demand. Now that’s fundamental for you!

This leads me to speculate on a theory. ( With the help of Mulder’s recent report to me )

*The recent bullish run of the EUR/USD may be more on the lack of confidence in the US Dollar rather than the confidence of the EURO.*

If this indeed proofs to be true, we may be in a better position to interpret economic releases in future.

As we close the week, bullish forces may attempt to take it back to 1.4910 to close for the week while the jubilant bears may try to capture more at 1.4850. ( This may indicate a break of the current bullish trend. Strong support expected probably )

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Today’s Non-Farm Payroll was unexpected and probably many margin calls happened. Hopefully none of you the koala readers had it. Remember it is core of the koala school of thought that proper money management must always be there.

Mulder just sent me a short update on the situation and it seems that many from the Union of Excessive Risk Kangaroos (UERK ) were hit by the rouge price action. Thank god the impact to the Kingdom of Koalas was minimum as most koalas stayed true to the values of the koalas.

Stay tune for the EUR/USD Weekly Review and another koala Forex Education article.

Trade safe and have a goooood koala weekend!

Read more Forex Articles and Views by The Koala at www.thegeekknows.com

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Read more Forex Articles and Views by The Koala at www.thegeekknows.com