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Good day forex traders!
It is midweek and i hope you are green so far. Making money in forex is not an easy game.
Yesterday, a survey indicated that global opinion of the European Union in terms of business opportunity had fallen sharply. Majority felt that the European Union probably had the worst investment opportunity. The European Union has much to do to improve it’s financial soundness. Over in the US, where conditions seem to be apparently better, Fed chairman Bernanke said that the recovery in the US is “moderately paced”. He acknowledge the unemployment problem, saying that unemployment rates are probably going to remain high for a while. This is probably holding back on massive investors’ funds.
Looking at the EUR/USD above, the H4 trendline met the currency pair and a tug of war ensues. Do remember that support and resistance lines are never a single pip. Let’s see how this turns out.
S&P 500 is currently at 1074+, up from the lows of 1040+.
Oil is around $74.
Gold has fallen and is now around $1220+. This may suggest that risk aversion is easing.
A report was out today that China’s exports surged. This suggests that global trade is still strong and hence sentiments improved. This adds on to the comments made by Fed Chairman Bernanke yesterday on the “moderately paced” recovery of the US.
Over in Europe, France and Germany called for accelerated action to curb financial speculations. The call was to ban bets against stocks and government bonds. The initial plan was to have this ready by October but it was proposed to have this ready by the middle of next month instead. The German Chancellor believed that speculators had a role to play in the European deficit crisis and the plunge of the Euro currency. The level of cooperation seen between the two leaders of the two largest economies brings optimism to the market.
We have more of Fed Bernanke speech due later and the US beige book, a report on current economic conditions ( which may have effect on the Fed’s interest rate decision) due to be released later. Tomorrow also bring us important events such as the minimum bid rate decision for the Euro Zone, US trade balance and unemployment claims. Trade carefully and have proper money management.
Bullish momentum may see the H4 trendline suffering a clean break and an approach for 1.2100/135. If the H4 trendline holds, we may see the currency pair heading towards 1.2000/1.1934.
Do you know what is Auto-Tune? It is a software that can re sample existing sounds to a different pitch. ( I think. I am not good in music. In short, it can make even a boring speech fit into a song. ) Some singers use this during live performance as a safely precaution to ensure good performance. Youtube is FULL of interesting videos made by folks using Auto-Tune. I posted one on the Facebook page. Go check it out. LOL
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