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Good day!!

Are you blue today? I am having a bluish blue monday!! thats double the blue!

I think i caught a minor flu bug again and my eyes simply can’t stand the computer monitor these days.

Arrrgghh.

What do we have here today?

eurusd

Our currency pair is undecided!

Bouncing up and down the past few trading days like a ball.

sp500

Likewise for the S&P 500, after bouncing a few days, it apparently continues to follow the pattern by moving up towards 1060. I will be watching 1060 for signs of failure.

Gold in the meanwhile has shot right up to $1061+. The last time we were at these levels, the EUR/USD went above 1.5.

Oil decided to join the undecided group and is currently at $76+.

***

Well well well. Pending home sales for US was great! Clocking in at 6.1% vs the expected 0.2%.

Home sales are always good for the economy in the way that it sparks a long chain of consumption. The construction, the renovation, the consumer electronics and the list goes on.

Now, if those home sales comes with loans that are almost guaranteed default X years later resulting in foreclosures, that’s not good :P

Since this belongs to the “good news” category, risk seeking activities have been spotted. Based on the recent risk aversion theme, this will cause risk seekers to sell their USD for other higher yielding currencies.

Indeed the EUR/USD jumped from 1.47+ to 1.48+ in a matter of minutes.

Before you start to celebrate your much over risked longs, ( ok i apologize. I am sure some of you do follow my teachings and maintain only 2% risk in trades ) do note that this is the week of important news, including the ALMIGHTY NON FARM PAYROLL.

Sorry i just had to do that.

And we all know what happens when extreme data is released. You can kiss your technical, fundamental, PRAYnical AND HOPEamental or any mix of analysis goodbye!

By the way, CIT filed for chapter 11 bankruptcy and according to a Bloomberg report,

“Common stock owners could be mostly wiped out, and the U.S. Treasury Department said it won’t recoup much, if any, of the $2.33 billion of taxpayer money that went into CIT, the largest firm to go bankrupt after getting a federal bailout.”

Ouch.

Keep a close look at the sentiments and be prepared to run if the merry making ends and folks realized that the recession is not quite over yet.

Bullish conquest will need to take out the double lines area of 1.4843+ to 1.4865+.

Bearish momentum if developed either because of negative sentiments or the technical pattern of the past few days will need to pass 1.4800 and then 1.4719.

***

You noticed the books on the left of the blog? These are forex books being sold at Amazon. I always feel that reading is good and do feel free to browse those titles.

One of my favorite is  Currency Trading For Dummies no kidding! I read it a few times when i just started.

And for those of you who feels that this is just a cheap way to earn some quick bucks from referrals, shame on you! Notice i only mention BOOKS.. CHEAP BOOKS not some super duper 100% LOSE money EA or SYSTEM yah?

Ok sorry. I was banging my keyboard so hard as i hate my good intentions being misunderstood always.

You have a good day and please if you always treat my ending phrase like a joke, this is crazy news week.. TRADE SAFE

Read more Forex Articles and Views by The Koala at www.thegeekknows.com

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