Today is crazy Wednesday!
Why? One, i am crazier than usual ( more on that later ) two, the EUR/USD is back at where it was weeks ago lol.
Remember i spoke about the possibility of the German Sentiments dragging this pair down.
The opposite happened!
S&P 500 our favorite clue warned us of this bullish momentum.
If you have been following my articles, you will know that i will look towards the S&P 500 as my “sentiment” indicator.
It turned out ok in the later part of the day and hence the EUR/USD move up was perfectly possible.
Similarly, S&P 500 is now back at the highs of weeks ago.
Oil is pretty much unchanged, currently at $78+.
Gold in the meanwhile has resumed it’s engine and is now $1115+. This indicates possible US Dollar weakness.
We have important news coming up tomorrow, including US Unemployment claims.
Any bad or good news may push the currency pair accordingly.
While on the weekly chart we remain bullish, i am hesitant due to the strong resistance of 1.5060-80+ and the 1100 line for the S&P 500.
A failure to overcome this may encourage the bears to commence attacks on 1.5000 and after which the 1.4967+ area.
Volume may be thin after London’s closure as there is a bank holiday in US.
NOW. Why am i crazier than usual?
I have folks asking me every now and then, why trade the chart? Why not trade based on predictions of some magic prices etc.
We must understand that the market is made up of sentiments and there is no way to predict sentiments! Say you like to play tennis now. Doesn’t mean you will forever. Simple as that.
Just like when i was writing my article yesterday, it seem likely to become bearish. The next moment, sentiments changed. I was told probably due to better than expected earnings from several big companies.
If you have been “trading the chart” ( What i mean by this is to be observant of the current price action and news developments ), you would have seen our clue the S&P 500 developing bullish momentum, suggesting possible upside for the EUR/USD.
Remember this ! Forex is NEVER about reading someone’s prediction and entering your trades, expecting a fortune moments later. You need to read, study, analyze and keep track of developments.
This IS why i like forex. Keeps me occupied!
The killing blow was a comment by someone saying ” You said we may see US dollar strength due to risk aversion from the German sentiments and now it is not. Do you know how to trade at all? ”
1) I have mentioned very clearly that forex is risky. You trade at your own risk.
2) I do not paint a bed of roses and i always said that no one can predict forex 100%. Not you not me. Things can and very often CHANGE.
3) I always ALWAYS said that forex is all about hard work. It is never about coming here to hear what the old geeky koala has to say and get all rich about it. You hear my views, you do your own analysis, you interpret your charts and you make YOUR decision. You find something good or better, share with me and let’s learn together.
I was so upset that i did not fire up my BattleForge to practice. Thanks to you Mr A that i will remain as a joke on BattleForge.
Thanks to Mr A, i am not doing a Ben O Trich indicator today. Don’t want anyone to tell me hey i saw Ben and hence it means confirmed US Dollar strength right? THE WORD IS possible perhaps maybe seems to be. IT IS NEVER confirm 100% definitely sure absolutely. Dream on !
Let me tell you now! The closest you can ever get to a holy grail in forex trading is PROPER MONEY MANAGEMENT and this is what the geeky koala is all about!
Trade safe ( while i go wash my face with COLD water boiling mad )Have you checked out our membership subscription? Enjoy your own member dashboard with exclusive premium analysis for as low as less than $0.20 a day! Time Limited Promotion 30% OFF. Secure Discounted Rates Now. Popular