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Good day to all !
Hope you are enjoying this wonderful weekend where ever you are
Let us take a look on how the EUR/USD fared this week and the possible scenarios for the up coming week.
The chart spoke for it’s own, it was basically a bearish week.
It the meanwhile, oil was slightly bullish, gold rather flat and the S&P 500 slightly bearish.
Oil closed the week around $73+. While it was slightly bullish this week, in the grander scheme of things, it is pretty much around $70+ for months. We know that oil may be seen as an gauge to the economy’s health at times. Having said so, oil may be telling us that the economy is pretty much so for now. Nothing moving forward nor backwards aggressively. Currently i am watching oil for major movement. If such a movement happens, we may be seeing new developments.
Gold ends up rather flat this week. This may be a combination of the increased strength of the US Dollar, the number of better than expected economic releases along the way and concerns such as about Dubai and Greece. As discussed in my previous article on gold, gold may be used as a safely boat when the waters are rough and hence during times of better economic sailing, we may see gold getting sold off as investors seek higher yield and when bad news arises, investors rush to hug on to the gold life buoy.
S&P 500 ends up slight bearish. Having said so, when we are looking at economic markets for clues and analysis, it is imperative that we understand the nature of it. S&P 500 is a rather volatile index and hence i may be inclined to view this slight bearish closure as perhaps nothing more than mere financial noise such as “profit taking on Fridays”
Our menu of economic releases for the upcoming week brings us important releases. We have releases such as US New and Existing home sales. Home sales is crucial to the development of the economy and hence this release will be closely looked at.
From a technical point of view, we are at a ranging region from way back Aug 09. Should there be no decisive developments in the global economic, we may see some ranging here. I will be paying close attention to ongoing problems such as Dubai and Greece. However do be vigilant about new or existing problems that the media fails to cover. For example, this week, we have 7 banks failing in the US bringing the total for the year to 140!
Take care and trade very safely. The fickle preference by the traders for the risk averse or fundamental themes simply makes things more complicated, Do tune in to my EUR/USD daily review for day to day views.
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