Hi all !
It is time to say ” I love it when my charts do well ! “
A happy Tuesday to you !!
EUR/USD drops like an anchor in the water. Touching perfectly on the potential support i drew at 1.4520.
Once again the region of 1120 is proving to be a strong technical resistance for the S&P 500.
Oil is currently at $72+. Nothing new or exciting to be seen.
Gold on the other hand tries very hard to be a winner again. After touching a low of $1111+-, it is almost back at yesterday’s closing. $1125+-.
Reason for the continued US Dollar rally?
Well for starters, the ZEW Economic Sentiment turned out lower than expected. Dubai World, hey i thought we had that covered with the $10 Billion aid from Abu Dhabi ! Yes we did for now. Hmm the media does need to find new financial crisis topics to cover right? We have Austria and Greece!
Austria was ordered by Trichet’s ECB to bail-ermm i mean nationalize Hypo Bank due to hidden loses in Eastern Europe. This is a wake up call to those risk seekers that we are not so out of the crisis yet!
Greece’s credit was downgraded by Fitch Ratings last week. Now after the Prime Minister George Papandreou’s pledge to cut the budget deficit failed to impress investors, sentiments are turning against the country. ( I won’t dare to even dream what will happen to the US if sentiments turned against the country’s superb crazy deficit. This is a case for Mulder another day. )
Did i mention gold went up after today’s low of $1111+-? Ok, yes i did. We have gold going up and we all know gold may go up during times of uncertainly, read the article if you have not. Furthermore, the strengthening of the US Dollar with no / little weakening of the gold adds to the suggestion that risk aversion has indeed crashed the party again.
Building permits is one of the economic release for the US tomorrow and we know that this is related to home sales which is an important gauge for the economic. Once again read if you are not sure why. Watch out for crazy spikes or movements if out of expected numbers are released.
Bullish relieve may bring the currency pair towards 1.4600-1.4620 while more bearish assaults may drive the EUR/USD to 1.4520 again, followed by 1.4480.
I have a new background! I hope you like it. You can harvest all of them as long as you have your proper money management hat on. Plan your trades. Slow and steady wins the race ok? Now you know why koalas are slow. Don’t laugh at us eh! 😛
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