Simultaneous Release at
Good Thursday Forex Trading Koalas!
In the previous review, we noted that the S&P 500 was suffering from some risk aversion. China intends to further cool the speculative growth and the Euro Zone faces extreme challenges. The EUR/USD tested the 1.32 region as sentiments weighed down.
Looking at the EUR/USD chart above, we observe a range of 1.32 – 1.34. These two lines are usually strong support and resistance lines.
The US Unemployment Claims performed slightly better than expected today and probably brought a boost to the market sentiments. This can be seen over at the equities markets. Having said so, the unemployment rate remains high and hence caution is advised. Mr Bernanke mentioned that slow recovery is keeping unemployment too high.
Over in the Euro Zone, Fitch reduced Ireland’s long term rating to BBB+ from A+. This probably caused speculations again regarding the economic stability of the Euro Zone. Many believe that the risk of a spread of the budget deficit crisis is high.
From a technical point of view, there seems to be a bearish bias as the currency pair tested the bottom support more versus the resistance top. A break of the 1.32 line may open up 1.3.
More important economic data is due tomorrow including the US Trade Balance.
Related Forex Articles from the Koala Forex Training College.
Read more Forex Articles and Views by The Koala at
©2010 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.