Masoud : EUR/USD Review 15 Jan 10
Hello King Koala and folks.
Good Friday to you!
The reduction of credit in China is likely to weaken economic growth and hence cause risk aversion. This may inevitably strengthen the Yen and Dollar as these two currencies are the usual “safe harbors” when it comes to times of uncertainty.
The China banks have started to reduce the granting of housing loans so as to prevent the creation of a price bubble.
Today before the market opened in New York, the JPMorgan Earnings Report will be announced. If it is worst than expected, the U.S session may bring a strengthening of Yen and probably the US Dollar Index will be lower.
As for the Greece deficit problem, with the comments made by Mr. Trichet, there may be even more pressure on the EURO as Mr. Trichet also believes that economic growth in the next two years will be gradual.
However the atmosphere governing the stocks and indexes seems to be positive and ascending.
Of course today is only the second week of 2010 and the stock market liquidity may not be normal. Therefore even the slightest news may cause more spikes than usual.
On the technical side, the price in the 4H time frame was rejected by the Fibo line of 38. and the MA200. It eased away from the resistance area of 1.4580. An important support in the pipeline may be 1.4260.
That’s it and do remember that Forex is unpredictable.
Analyze with open eyes and trade without emotions.
Masoud.
Masoud is a businessman and a Senior Koala at the Forex Factory Koala Thread.
