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Good day forex trading koalas.
It is mid week! You know what you need to do… be green for the week with pips!
Yesterday saw trouble brewing for the Euro Zone. Investors were worried that due to the large amount of sovereign debt of the weakness economies in the Euro Zone held by the big banks, more capital needs to be raised. Risk aversion was strong and the price of gold was evident. Worsening the situation, the German Factory Orders was much worst than expected, prompting more risk aversion. It was a day for the risk adverse!
Looking at the EUR/USD chart above, we can see a sharp V like pattern.
The S&P 500 recovers and is just slightly off 1100.
Oil is around $74 and gold has fallen slightly to $1257.
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Remember i said that nowadays the market moves are probably more emotionally based rather than fundamentally based? Indeed it is. The V pattern as seen above is an indication of so.
Just yesterday, we noted reports of investors worries on the banks’ holdings of weak sovereign debts. Today we witness good take up of the Portugal and Poland bond sales. We all know what it means when something is popular. You don’t? Ok imagine you are at a supermarket. You see a product A and everyone is flocking to it to get buy one. What comes to your mind?
” OH SO POPULAR. IT MUST BE GOOD !”
And here we are today, the waters of risk aversion receding back to the ocean. Before you jump onto the train north, allow me to humbly remind you. Such sentiments are fast and furious. It can catch you unaware and before you know it, you are alone on the train! The German Industrial Production came out much weaker than expected today and these weak data may indicate a sluggish Euro Zone economy.
Tomorrow brings us much economic data including the US Trade Balance and Unemployment Claims. Caution is advised.
Trade safely.
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I managed to leave my crazy work earlier today and i felt so different. I have been missing so much.. a nice walk, the birds, clear blue sky the world is a beautiful place… but do we have the time for it? CYA 
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