By Yan Petters – Now that Christmas is behind us, and New Years Eve is only at the end of the week, we have plenty of time to end this year with a big smile on our faces. Two thing happened last week that we can actually use this week:
1. The Dollar failed to extend its bullish trend against the Euro. Currently, the EUR/USD pair is testing the 1.4420 level. In case this level will be breached, the pair has the potential to jump up sharply. However, if the pair won’t manage to cross through this level, the EUR/USD could be on its way to the 1.4250 level again.
2. Crude Oil is climbing rapidly. After dropping below $73 a barrel crude oil then rose sharply and reached over $78 a barrel; marking a 3-week record. The reason for oil’s recovery is the positive data from the U.S. economy. This is creating optimism regarding global recovery, which of course means higher demand for energy products. A continuation of positive publications has the potential to boost crude oil further; potentially towards $80 a barrel.
Also to take note of is the thin trading we should experience this week. Since some national banks will be closed due to the holidays, we will probably see a level of choppy trading from the lack of liquidity. Traders should be aware of this and place orders with caution. Make sure you don’t forget your Stops and Limits in this week’s trading.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
