Good day to you!
Today is the second day of trading and i hope you are building your way to a week in GREEN 🙂
So far the week had been pretty quiet with the absence of any major economic release.
Looking at the EUR/USD, in view of the light activity in the data cabinet, the currency pair remains in a narrow range.
After the great bullish run up, the S&P 500 currently hovers around the 1140 resistance. A break above here will probably require strong sentiments.
Oil is currently around $79. Likewise, a break and hold above $80 will probably need a strong drive of sentiments.
Gold continues to fall in value and is currently trading around $1117+.
While the data department is light today, trust the forex koala to share with you insights you may never know 🙂
The Greek Prime Minister is meeting the US President today and the agenda is reported to include the discussion of support from the US against “unprincipled speculators”. While this may buy time, i feel that this fact of having speculators is the nature of the free market. While it may be “unprincipled” it is ultimately still a form of sentiment and sentiment IS equal to the market.
The unfortunate issue here is that Greece is at the receiving end of negative sentiments.
Today an European Central Bank council member said that the ECB could accept lower rated bonds as collateral as long as an appropriate pricing of premium was applied due to the additional risk. If this policy is materialized, it may open up relief for Greece as the problem of a potential cut in it’s rating may no longer result in a loss of access to the ECB.
Equities all over the world are rather bearish as a number of earnings fell short of expectation.
Do be on a look out for risk aversion.
Although we have economic data due from both sides of the Atlantic tomorrow, these are expected to have no major impact in the immediate momentum of the price action. Nonetheless, do plan your trades well and be on the lookout for unexpected developments. Check out the economic calender for more details.
Bullish return may see us heading towards 1.3600/80.
Further bearish attacks may test the support of 1.3550/1.3455.
Alright. 2 down, 3 to go before it is the weekends. Looking forward to some valuable time to do an article or two. Remember our goal! Finish the week GREEN!