If the EUR/USD is a girl then how i am feeling about it now can be represented by a song.
Kardinal Offishall ft Akon – Dangerous
“dangerous that girl is so dangerous that girl is a bad girl”
( p/s no offense to ladies.. there are definitely bad boys too ! but i cant find a unisex song to represent ha!)
Look at how the currency pair has been ranging? Wiping off over risked margin accounts like Godzilla on little soldiers.
Our buddy the S&P 500 wakes up with a morning flu as usual!
Why do i say morning? Because later in the afternoon, some strange almighty sentiment will probably sweep this up green. Just like a flu quick cure tablet ! Be on the look out though as the momentum seem to be hitting a resistance for now around 1110.
Oil is at the top of the range near $80 now and i am watching it closely to see if it goes above resistance.
Gold in the meanwhile made new records again at $1150. Currently it takes a break at $1140+.
WHY DIDN’T I CHOOSE TO TRADE GOLD INSTEAD?
Nevermind. If i did so, i won’t have this wonderful koala blog! Take note that Gold is usually inversely correlated to the US Dollar. I have not seen a drastic drop in the US Dollar yet and hence perhaps folks are trying to stall the US Dollar fall or the Gold price may be driven by speculations instead. ( Potential bubble here )
While many folks are surprised and confused about the price action these days, don’t be! Many things are going on in the financial world now and hesitation will be there.
As we test the major resistance of 1.5000, it will be interesting to see where we go from here. On a long term view, we are still pretty much bullish ( read my weekly reviews for long term views ).
Today brings us reports of Fed saying that rates may not be raised until early 2012. You folks know the drill. What happens when interest rates are super low compared to other currencies. Folks move on to others.
Unemployment claims for US tomorrow and therefore do buckle up your seat belts.
Bullish moves may need to clear the region of 1.4960+ before making an attempt at 1.5000.
Bearish adventures will possibly bring us to 1.4910+ before 1.4860+.
I have folks asking me. Whats up with Mulder? LOL
For the sake of the new folks joining in, in a previous article i commented about how the market seems to play me out at times and perhaps there is a cover up or something like those from X-Files. Therefore i needed Mulder to investigate it. That post was crazy and we even talked about how forex in an alien world may be like and readers even emailed me to discuss!
Now, i am not sure if Mulder will be available soon to find out why Gold is going up so high but i will definitely be trying to contact him. I need him!
In the meanwhile, trade safe and take care!