Recovery From Economic Crisis

Absolutely, things will get better...but we have to keep in mind..this economic crisis started from the top and came down and crashed on the bottom (Street). So, the recovery will and is going to be seen first on the top and then gradually it will (eventually) hit main street (Middle class, People looking for jobs, fresh graduates, businesses and those who really suffered during this turmoil ETC.). Its like a chain and the leader has to lead us out of this crisis because it was the leader that led us to it.

So, if China, Japan and other economies like them have been hit hard due to US. Then yes, when things will get better here on Wall Street and Financial Institutions will have stability, more and more signs of inner growth will be visible, the consumption will get back on track that will automatically bring the production on its way to better levels ahead.

However, we should learn from our mistakes and observe and restructure our strategies to lead the world out of this crisis by keeping us safe and secured. I believe our new administration led by Mr. Obama will have a strong and long lasting impact on our countries economic growth from within. The more powerful we are from inside the better of we are in confronting any challenge that lies ahead .

Us economy is back on track: Yes, I think so we have hit the bottom (too early to confirm) but the economy is a state of Consolidation....the recovery platform is really fragile. It will take at least 3 to 9 month for us to really confirm that we are moving upwards with a strong base. New administration is placing all the right tool to make the recovery with strong and stable platform so that for sure we see a recovery (Growth).

As far as the street level is concerned: I am involved in retail business as well and for sure people (regulars) are suffering...jobs are hard (Almost Impossible) to find....A lot of people are and using their savings and most of them are now broke as they been out looking for job and its tough.
Plus, It is hard to find something when you are desperate...especially job/ work...because each door you knock during hard times seems to be the only hope out of present situation and definitely present job market is not helping at all. (Skilled, Experienced, Educated and fresh all looking for work).


It is obvious that the Global Economic crisis is hitting the bottom (Japan, Germany, Spain, US, China) and other leading economies are doing whatever necessary and possible to make this not last for years to come.

This is what I think we need for a stronger growth....

1: Stable Financial Institutions.
2: Better and Stronger Regulations for Consumer. Policies that help rather than abuse.
3: Stronger Regulatory Bodies. The ones that evaluate and reevaluate Institutions, organizations and infrastructures of businesses around the country.
4: Credit Flow. For the help and use according to ones means and ability to afford.
5: Stronger Infrastructure. Federal and Local Government.
6: A Strong Educational System (That educates and prepares our generation to compete, be innovative and Constructive on the bases of Compassion, Equity and Justice).
7: Health Care system that protects the poor and middle class rather than crippling them.
8: Cost Effective Transportation and Technology system for people.
9: A Strong Foreign Policy that put/ places USA in a stronger and a better shoe. A Nation that Cooperates with its Allies and others, Leads to conflict resolution, a Nation that is Innovative, Strong and Powerful when approaching its Counters and the one that leads and supports others through difficult situations/ times....All by keeping us more safe, productive, effective and strong.

EUR/USD on a H4 Chart

Click on image to evaluate the trend.

EUR/USD between Moving Av. 100 & 200 HR

Pair is falling right in between the moving averages....which makes trading between averages a great possibility...when applied with other technical studies.

EUR/USD Long Term Picture

Upward trend: Market tested 200 D Moving Average at 1.2424.

Also, having difficulty to move...10 to 25 Pips over 1.3500...but D1 charts shows a clear picture...as to why!


See chart image for reference.

EUR/USD before EURO trading day begins.

Providing a non confirmed support level at 1.3432 see cahrt.

US Bank Stress Test

A little that I know and or understand about the stress test is ...that it is extremely important for the banks to pass it in flying colors... :) Go green Banks.
If US has to lead the world out of this economic crisis the banks must show and provide a strong support and also implement new and strategic tools that will ease up the credit flow and consumer confidence once gain but with a positive/different perspective to the next generation's financial markets. I see a boom in Private Equity Options as well.
Earlier this year (1st Quarter) we have seen US Banks showing profits....Wells, JP and Citi were the top leaders...and Investment Advisory Firms.... Mr. Buffet also mentioned that US financial system is on the right track out of this crisis.
Banks have been trying to get rid of their bad debit out of the balance sheets and re-evaluate their investment strategies, infrastructure and focus on long term equity perspective. Ill say if the Banks keep things under control and keep monitoring their financial long term approach on the bases of Compassion, Equity and Justice...then yes we are and will lead the world once again in the new ear of Financial Stability.

I see a positive results on Thursday..but you never know....present administration is pretty tough to get away with...they might bring out something that needs a key attention and immediate fix in the banking system to get us out of this crisis......or may be I am just being.... :-)

EUR/GBP

EUR/GBP is another pair where we can find +ive and --ive Trades.
However, from my perspective EUR/GBP pair gives long term trading opportunities as well as short term.
If you see on the D1 chart of this pair....a clear movement between Fibonacci Retracement levels...since Jan 09.
Long term rally below trend line?
I think so the 200 D MA is moving upwards and 100 D MA have barely started moving towards the right side after a stable and a gradual climb.
200 D MA will provide a support as the pair starts to move in between the 2 averages.
Whatever the case may be the trendline on D1 shows and slide down....bcz of currency is under the 100 D MA and trend line is the second resistence...previously the currency was moving above 100 MA and beneth the trend line.

On the M15 chart you will see a different picture of this pair as it shows a lot of buying pressure at the moment....with the pair testing the 100 MA. Its happening all after breaking the trend line and taking a breath... So shall I long it or short it?

100 PIP day

EUR/USD moved as anticipated after a dip in EUR session. USD/JPY dipped towards 38.2 Ret. Level. Tuesday ttrading session will take markets into a different direction. Fundamental analysis will play a key roll in next 36 hr trading.






Glod had a jump after it dipped down to 878.81 to 906.96 in today's trading session. Also, Silver saw a 60 pip jump after a slight dip in early Monday trading session. Which also helped dollar to be on the stronger side of the picture.

EUR/USD

EUR/USD is moving slightly over 1.3300 level.
It might dip a little in EUR session after touching the 1.3355 level or over.
However, I think the bigger picture is showing a slow trend towards the 1.3500 level...we will see.

EUR and US Markets will determine the trend for this pair.