Tuesday, October 20, 2009
EUR/USD Profit Taken
An impressive profit taking Friday it was. The pubs down the street were probably packed with bankers, traders cashing out on their fresh pips!
As of now, Friday’s candle looks almost like a duplicate of today’s. Only difference is that one is red while the other green!
In the meanwhile, our buddy the S&P 500 had a similar experience too. Almost duplicates. One red and one green. So Friday perhaps was indeed Profit Taking Friday! S&P 500 looks determined to test 1100. We may experience some reactions at 1100 and hence be prepared in case it surfaces in the currencies too. Gold fights to maintain it’s crown at around $1053 now. Oil has moved above it’s previous range and is now towering above $75. $80 anyone? *** While the S&P 500, gold and oil continue to suggest that the US Dollar may suffer weakening pressure, commodities currencies like the AUD and NZD continues to assault the USD as well. Any breakdown in the current bullish run will most likely manifest itself in the above markets. It is interesting to note that the previous highs we plotted continue to serve us well as the price continues to face resistance around the previous high of 1.4951. As i mentioned previously that the path to 1.5 is riddled with short orders of all sorts and being a major line itself, expect a bumpy ride. A further assault by the bulls will need to take over eventually Friday’s high of 1.4967. After losing ground gained on Friday, any bearish attempt will begin first with previous highs of around 1.4910. On a side note, as the USD becomes weaker and weaker, we face increased risk of intervention by central banks of countries that have an interest in a stable USD. One example, Creditors of the US. *** Was judged unfairly over the weekend by someone. Being me, i always try to bring the best to everyone and that person definitely brought me down a fair amount. Nonetheless, i told myself to remain focused and continued to read up on articles! Did you like the idea of a US Dollar section? Stay tuned for entries over the weekends there. Well i did not have the time to practice BattleForge. 9 out of 10 of my PVP matches, i was owned. Am so tempted to spent some pips to by better unit cards. Labels: ADVFN NewsDesk, Fundamental Analysis, Technical Analysis |
