Good Monday Koalas!
Welcome back to another week of fresh trading. A new start a new beginning. A chance to make things green in profit. That is if you don’t suffer a margin call first!
Last week, we ended the week bullish. With the apparent agreement on the mode of aid for Greece, the market was relieved that things finally may get a resolution. Having said so, we know how the world works. Unpredictable. Therefore always be on the lookout.
Let us now take a look what the new week holds for us.
Firstly, i will like to try a new format. Doing my daily reviews on the H4. Please let me know if you like it at my page on facebook.
The EUR/USD having tested the 1.3500, eases off for the moment, supported by the strong line of 1.3455+/-.
The S&P 500 remains above 1160. This suggests strong positive sentiments with regards to the US economy.
Oil is up at around $81 on increased optimism.
Gold receives a boost from the weaker US Dollar too. Currently valued at around $1110.
Late last week, the European Union decided on the “cocktail” of aid for Greece should it be required. A mix of IMF and Euro Zone led aid. This came as a compromise mainly between France and Germany. France supported a Euro Zone only aid while Germany wanted the involvement of the IMF.
This settlement brought the EUR/USD back above 1.3400 after a steep test of the low of 1.3285+/-. Carrying on the momentum albeit with less strength, risk appetite increased around the world.
I always believed in the concept of having two sides to a coin and hence i will like to humbly remind you that the Euro Zone crisis may be far from over. Portugal’s rating was just downgraded last week and there were talk of issues with Spain’s financial too. Watch for adverse developments always.
Reports of an increase in consumer spending in the US for the month of February, making it five months in a row, probably helped to boost sentiments too. Furthermore, the Non Farm Payroll due on Friday is predicted to report a job gain of more than 100K. The largest increase in three years. While we must not forget the unemployment rate remains high, this is a much welcomed figure. However needless to say, should an unexpected stray from this figure into the negative zone happen, it will probably cause much risk aversion. Be careful of unexpected developments.
Tomorrow brings us important economic data such as the US CB Consumer Confidence.
A resumption of late last week’s bullish trend may test 1.3500 again followed by 1.3550.
Should complications arise, we may see an attempt by the bears to target 1.3400/360.
I had a bad Monday today. Am tired but nothing can wear me down. Koalas are a resilient lot. Look at Sam the Koala and you will know. Looking at the koala tree in facebook, i am very happy indeed. We have 170 koalas there now and we help one another. Join us there and together we learn forex 🙂
Have a great day and trade safely!