EUR/USD needs more reason to climb
As much as i try to be objective and write about both sides of the coin, the rate of negative news streaming out is unavoidable.
With a more than expected job cut in the US in August conducted by a private survey, risk aversion could be triggered.
The daily trendline we talked about so often faced a challenge today and it is safe for now.
Do note that the EUR/USD is making lower lows recently and the highs are not impressive.
Coupled with the recent developments, we may be heading for a bearish trend.
I was slightly bias towards being bull but these days, the negative news are hard to ignore.
Oil clearly broke the $70 resistance.
This will trigger further bearish sentiments.
If it fails to climb back to $70 soon, i will be watching for more breakdowns.
S&P 500 took an extreme beating yesterday and looked posed to continue through today.
Likewise if it fails to climb back above 1000, bearish momentum may prevail.
Presuming negative sentiments continue on, we may indeed be looking at a correction across the various markets.
How this week closes should probably give us a clue.
Trade safe as always.
