EUR/USD Daily Review 4 Jan 10

Blue Blue Blue.

Welcome to another Monday complain article about how everything is blue!

Folks i warned you previously that the first working Monday will be celebrated with blue! Hundreds of emails waiting to be read. Bosses demanding work done yesterday. Whats new?

Even the weather in US is coooooooooooooold.

Oh. Folks long on the EUR/USD are probably not blue then. The long green candle brought the longers a good pip harvest.

Our market clue the S&P 500 bounces off sharply the support at 1120. Don’t you love it when MY charts work.

Ok apologies. Let me calm down this blue in me… *Breathes deeply

Moving on.. Gold caught the ride up too, currently at $1120+. Probably due to the sudden US dollar weakness.

Lastly oil trades around $80 as the cold weather in US brought increased demand for oil. I mentioned previously that a clean break of $80 ( which is a strong resistance ) may indicate a new phrase in the recovery. Let’s monitor closely as oil may be a clue to the economy’s health.

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SO WHAT BROUGHT the EUR/USD up?

For starters, the EUR Final Manufacturing PMI increased again, leading investors to speculate that recovery is strong. Furthermore, with the holidays behind us now, risk seekers are out on the hunt again. Reports earlier of China’s manufacturing expansion happening at the fastest pace in more than five years probably helped to boost the sentiments.

Having said so, we have an overflowing menu of economic releases this week and hence any adverse result may turn the tides. I also think it is critical to remind you that this coming Friday is… MARGIN CALL FRIDAY !!!! Yes. The day US Non Farm Payroll is released. Read The Story of Tom to find out why Non Farm Payroll is my preferred choice of a margin call story.

Earlier the US ISM Manufacturing PMI came in better than expected. Be prepared for possible reactions to this too.

Further bullish conquest may test 1.4445 /80.

If the better than expected release from the US ends up affecting the investors’ choice of currencies, we may see a bearish test of 1.4400 followed by 1.4362.

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Thank you for enduring with my bluish attitude. I feel blessed knowing that i have readers like you who do not look down on me just because i am a grumpy koala.

Hey have you played Left 4 Dead 2? During my vacation i had some time for it. Pretty interesting. Have you ever wondered what will YOU do if something like this happens in real life?

s c a r y

Trade safe and harvest those pips!

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