Forex Guides

EUR/USD Daily Review 10 May 10

Good Monday Koalas!

Are you blue today? I hope not. The forex gap earlier was a nasty one.

Last Friday before we closed for the weekend, we noted that the finance ministers of the G7 countries were concerned that the crisis was deteriorating. It was felt that the measures to curb the deficit crisis were inadequate. Over in the US, while the NFP came in better than expected, the unemployment rate went up to 9.9% as new job seekers entered the market.As there was an EU summit ongoing, i warned about the possibility of a forex gap.

The EUR/USD opened for the new week with a big forex gap and tested the resistance of 1.3090. I LOVE IT WHEN MY CHARTS WORK!

Recovering from the sharp dip last week, the S&P 500 index of US equities touched 1160 earlier, suggesting that sentiments are improving.

Oil has recovered slightly and is now hovering around $80.

Gold has retreated slightly too probably on increased relief on the confirmation of EU’s action to curb the crisis. It is currently trading around $1197.


Equities around the world mainly rallied today as the European Union came to conclusion on a crisis aid plan to lend as much as almost 1 trillion dollars to the worst hit countries. Furthermore, the ECB mentioned that it will ease severe strains in certain markets by purchasing government and private debt. The cost of insuring against a sovereign default by countries like Greece, Spain and Portugal fell too as sentiments improve. The central banks of various countries like the FED and the ECB reactivated currency swap arrangements too to combat the spread of the Euro Crisis.

While the majority of the world celebrates with relief, it is my humble duty to remind that the crisis is far from over. Strikes still threaten Greece and an aid amount that big will take considerable effort, coordination, paperwork and more to deliver. Negative sentiments may rear their ugly heads to pick and highlight any potential hiccups. Continued monitoring of developments is crucial. As shown in the latest EUR/USD – Gold correlation report, we may observe the movement of gold for risk aversion clues.

While tomorrow brings us mostly low impact data releases from both regions, look out for the crisis developments as mentioned. You can find the list of the various economic releases in the Economic Calender below.

Continued bullish relief may bring us to 1.2880/950.

A return of bearish pressure may see 1.2800/720.


Was chatting with a few koalas earlier and they mentioned that the forex gap took a chunk of their account balance away. Sigh. Proper money management is the most if not one of the most crucial component to forex trading success. Do not neglect it and it will serve you well.

Trade safely and let’s finish the week in green!

Invest In Yourself And Get Premium Analysis
Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

View Subscription Options

Would you like to connect?
Get notifications on new forecasts and articles.

Sign up to our emailing list and get your FREE Stop Losing and Start Winning in Forex Checklist!

Trending Forex Articles

  • EURUSD Weekly ForecastEUR/USD Daily Review 10 May 10
  • EURUSD WeeklyEUR/USD Daily Review 10 May 10
  • eur usd daily analysisEUR/USD Daily Review 10 May 10
  • EURUSD daily chartEUR/USD Daily Review 10 May 10
  • EUR/USD Daily Review 10 May 10
  • EUR/USD Daily Review 10 May 10