Good day Koalas.
Yesterday saw the US House of Representatives passing a health care legislation that paved the overhaul of the health industry. This brought bullish uplift for the EUR/USD.
On a technical basis, the EUR/USD bounced up sharply after testing the 1.3455 strong support.
Let us now review what Tuesday holds for us.
Having tested the line of 1.3550, the currency pair is right below it now.
On a similar note, the S&P 500 is slightly bearish for now. Nonetheless as i said before, with the recent EUR/USD and S&P 500 correlation report, we must be prudent as the correlation may not be as before.
Oil is back above $80.
Gold remains steady at around $1102.
While there are no major adverse events today, i do have a few reports to share.
Investors are getting concerned with regards to the ECB policies. With the Greek deficit crisis and the problematic budgets of various other European Union countries, investors are speculating that the ECB will maintain low interest rates. As an excessively low interest rate may dampen economic demand, investors are worried. Having said so, this is probably unavoidable as the troubled economies in the EU need the extra push to climb out of the ditch.
Over across the Atlantic, although the US existing Home Sales report came out pretty close to the estimates, it is still dropping versus the last release. As home sales is a good economic stimulus, a drop may have wide implications. The US unemployment problem is probably causing a drag on home sales as people turn defensive on their spending.
Tomorrow brings us more important economic data such as the German Ifo Business Climate and US New Home Sales.
Bullish momentum may bring us to 1.3550/600.
Bearish assaults may drop us to test the strong line of 1.3455 again.
Arrghh! I am sorry i can’t stay long today. I am having a terrible migraine.
Trade Safely please!