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EUR/USD Daily Review 24 May 10

Good day forex traders.

The start of the new trading week brings new possibilities to make money in forex! But only if you are trading the right way LOL.

Last Friday, we saw Germany’s lawmakers approving the country’s share of the aid. Many investors were relieved as this might stop the escalating Euro Zone’s deficit crisis. Officials of the European Union gathered for a meeting to discuss changes to economic polices and controls. As of such meetings, investors probably felt positive that something concrete might be happening.

Technically, investors were speculating that we might be in oversold territory. Well this might be possible provided that no further adverse event happened.

Looking at the EUR/USD, the currency pair was mainly bearish so far. It applied brakes when it approached the strong line of 1.2330. Giving me another reason to shamelessly boast. I LOVE IT WHEN MY CHART WORKS!

The S&P 500 is currently bullish after a recent dip. Investors were reported to be hesitant about the extent of the Euro Crisis.

Oil hovers around $71+. Retreating from the $80s, this may suggest that the recovery has taken a step back as oil may be a clue to the global economy.

Gold is bullish at $1190+. This suggests demand. As gold is a popular choice of investment when it comes to risk aversion, this may be an indication of anticipated risk.

***

A Spanish bank was reported to be seized by regulators today. This among other lingering concerns probably prompted investors to question the extent of the Euro Crisis. The recent measures may just simply buy time instead of setting a sustainable stability to the region.

The US existing home sales came in better than expected today. However we must remember that this is probably due to the tax credit stimulus and more importantly will be the performance without it in time to come. Home sales is usually a good stimulus for the economic and hence it is an important data to observe.

I read a report today that suggests the US Dollar may be evolving into a growth currency in time to come due to the apparent strength in the US economy compared to the Euro Zone, Japan, etc. If this becomes reality in time to come, we will probably see a reversal in most of the correlations that we now monitor. For example, instead of the US dollar strengthening in times of risk aversion, we may see it weakening instead. Only time and of course close monitoring will tell.

Tomorrow brings us a number of data including the important US CB Consumer Confidence.

Bullish sentiments may send us towards 1.2440.

A return of the bears may target 1.2330 again.

***

I was looking at the number of articles / reviews on my website and i noticed it is over 400! Yay! The website has come a long way.

Time flies and i thank you for your continued support! ( And your tolerance of my occasional boasting like today LOL )

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