Simultaneous Release at www.thegeekknows.com
The currency pair gap up over the weekend.
The de facto rule of the market is that gaps will usually be closed.
It does not seem likely for now.
Having broken the 1.4600 resistance during early trading, 1.4600 serves as a support now.
The equities bulls have staged a comeback and seems determined to break 1040. They are aided by the positive news of expansion for the service industries in the US.
Oil heads towards $65 which may put buying pressure on the US dollar.
Gold remains above $1000 which may put selling pressure on the US dollar.
Mixed clues from these 2 departments.
I find it very peculiar that despite the bad data for the non farm payroll, the market chose to apparently ignore that with the equities party.
Being at an decade high unemployment rate is something to be reckoned with.
I also noted that for the first time in almost a year, a negative release from the US apparently did not spark risk aversion but instead caused the other currencies to raise instead.
This may mark a return to “standard” fundamentals, no longer the “risk aversion” fundamentals.
I will be watching keenly for more confirmation.
Traders watching the G7 meetings closely have noted a lack of comments on US dollar weakness and have apparently take that as an approval for further dollar weakness.
Bullish pressure on the currency pair will bring the next major resistance to sight at previous high 1.4719.
Any bearish attempt will need to regain 1.4600.
A few of my readers told me that having twitter updates may be good. I hear you and now, not only am i on twitter, i set up a feed too.
You can find the links to the left. ( @ www.thegeekknows.com )
Don’t let my hard work go to waste alright? I spent an hour trying to figure twitter out lol
Alright it is past midnight now and i have not finished my chores for the day.
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