EUR/USD Weekly Review 28 Dec 09 – 31 Dec 09

Hi all,

welcome to the first post of 2010 🙂 With the New Year brings new possibilities and hopes. Let’s embrace life and take each challenge as it comes.

This week was a short one. The ranging situation i mentioned last week did turn out to be so. Such conditions are very challenging and hence proper money management is highly critical.

Based on the first circle, we seem to be due for more ranging price action. However past performance is not a definite indication of the future and hence prudence must be exercised.

We may be seeing low volume conditions next week as institutions and investors may still be having their holidays. Low volume conditions bring the possibilities of unexpected spikes and magnified reactions to news / economic releases.

Adding on to the uncertainties, next week’s menu of economic releases is stacked high! We have the likes of German Unemployment Change, Industrial Orders on the EURO side and Pending Home Sales, ADP Non-Farm Employment Change, Non-Farm Payroll on the US side. Each of these releases have the potential to ruin your day and this is just the gist of the list. Check the economic calender at the bottom for more information.

We may see trading bounded to the 1.42-1.45 range. Any break of either side may indicate a new momentum. In the meanwhile, continue to monitor the equities and gold for clues.

Trade safe.

Read up on more Forex articles. My buddies’ blogs are a good read. Casey tackles the EUR/USD at his blog while Forex Crunch covers most of the currency pairs!

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