Good day to all.
Yes it is Friday. Hopefully everyone survived the US non-farm payroll.
The EUR/USD dipped sharply and tested the 1.3600 line. While 1.3740 did present a support of sorts as mentioned yesterday, the negative sentiment overwhelmed the defenders.
The S&P 500 continues falling despite the improved unemployment rate of the US. This strengthens the view that the current correction is caused by global problems.
Oil falls below $70 and this is a cause for concern. As oil can be a clue to the global economy’s health, a break down may indeed be occurring should it fail to snap back above $70 soon.
Gold has fallen to $1050+, a level unseen since OCT 09. The pressure from the strengthening US Dollar is strong and close observation must be done to see if gold falls below this area of support.
While the US unemployment rate became better, the non-farm payroll clocked in worst than expected. The unemployment problem remains a threat and with the current correction underway, i am concerned that it may put a strain on the labor market again.
Over at the Eurozone, the problems of Greece, Spain and Portugal continue to weight down the sentiments like an anchor to a ship.
G7 meetings will occur over the weekend and hence do be careful of possible volatility over the weekend.
As the market prepares for the closure of the week, bullish pressure may bring us closer to 1.3680 while continued bearish momentum may target 1.3550. If momentum fails to pick up, we will probably close the week near 1.3600. Stay tune for the EUR/USD Weekly Review and the Non-Farm Payroll Report over the weekends.
It is the weekend and i need to catch up on my sleep. Anyway i did not get a migraine this morning and hence this week will not be remembered as “Migraine Week.” A koala buddy of mine was telling me that a newcomer to forex had his account reduced from $5000 to $900 in just 9 days. Am sad to hear this. Sigh. Is there anything else we can do to make folks realize the dangers of margin call?
T R A D E S A F E L Y