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Good day forex trading koalas!
In the previous review, Masoud mentioned that a double top formation developed on the H1 EUR/USD chart and a drop to 1.3080+ may happen if the formation turned out to be true.
Looking at the EUR/USD chart above, Masoud’s view on the EURUSD was right on the spot! It tested the 1.3080+ region and looked poised for more.
The S&P 500 is facing mixed reactions for now probably due to the US Unemployment Claims. While the US Unemployment Claims turned out to be worst than expected, based on an average taken over the past four weeks, the figures are dropping.
I always mentioned regarding the complexity of how the markets are influenced by sentiments and now is a perfect example. A group of investors with knee jerk reactions probably became risk averse regarding the worst than expected data. On the other hand, another group of investors probably analyzed the data, saw the lowering trend and are probably optimistic regarding the US employment market.
Among the various economic data due tomorrow, lies the US Non-Farm Payroll and the Unemployment Rate. Estimates are optimistic and hence if unexpected data occurs, we may be seeing strong reactions. BE CAREFUL OF US NFP !!
As we hover around the region of 1.3090, do be aware that a historically strong support of 1.3 lies below.
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