Welcome to Thursday. If you are green so far good job and keep it up. If you are not, try to break even at the very least but strictly no excessive risk or crazy emotional trading!
Yesterday saw positive sentiments led by the Asia region. Data in the US however were mixed. Fed Chairman Bernanke said that the economic recovery of US will likely be moderate due to factors such as high unemployment. He reminded on the need to keep interest at record low rates for an “extended period.”
The EUR/USD was bearish for most part of the day and is currently at the strong line of 1.3550.
In the meanwhile, the S&P 500 remains unaffected.
Moments earlier, the US Unemployment Claims came in worst than expected. This probably spooked investors who were risk adverse. With the unemployment rate high, investors are worried that the consumer markets may be affected as households save on their spending. This deprives the economy of much economic stimulant.
Over to the Euro Zone, the premium cost of holding Greece’s debt increased. Despite the details of the combined aid package, it seems that the markets are once again concerned about the Greek deficit crisis. The various Euro countries’ parliaments need to vote on the decision to contribute aid and investors may be anticipating hiccups. I mentioned that the crisis goes beyond a simple fix and hence do be careful.
On a technical basis, the forex gap that developed over the weekend remains to be closed. Once again, do be reminded that nothing in forex is 100%. Therefore there is no 100% certainty that the gap will close. Besides, the strong line of 1.3550 is yet to be broken. Do remember that resistance and support lines are never a single pip.
Tomorrow brings us important data such as the US Building Permits and EURO CPI.
A bounce off the support of 1.3550 may take us to 1.3600/680.
A clean break below may see 1.3455 next.
I had a long long day. The bed looks inviting but i am not done for the day. When can i ever pay my sleep debt in full LoL
Trade Safely and remember to finish the week in GREEN !