FYI | May 29 2012
FNArena has added another video to its Investors Education section on the website. In this video, ATW's Jerry Simmons explains why EUR/USD has become an investor's best guide for the days and weeks ahead. Where goes the euro, there go risk assets seems to be Simmons' message even though he has observed some divergences in between assets in recent sessions.
According to Simmons' analysis, which is technical in nature, 1.26 is now the pivotal level for EUR/USD to break. If and when EUR/USD manages to move past this key technical resistance level, Simmons anticipates this will translate into a rally for risk assets. On the other hand, EUR/USD revisiting 1.23 seems but a genuine possibility he suggests. Last week's trading pattern for the cross is labeled "typical bear market behaviour".
Were 1.23-1.24 to give in, the next level of significance becomes 1.174-1.185 he reports. So watch EUR/USD this week for any guidance about which direction will become the path of least resistance for risk assets, Simmons advises.
He suggests there's a real possibility some equity traders are moving back into the market in anticipation of an upward break-out in EUR/USD.
Among observations made is a bearish suggestion for US T-notes and a potential major reversal for Apple shares. Also, Simmons thinks it is unlikely that gold can rediscover its lost mojo without a break-out to the upside for EUR/USD.
To view the ATW Strategic Prep Video click HERE or visit the FNArena Investors Education section of the website.
Here's the direct link: https://www.fnarena.com/index2.cfm?type=dsp_front_videos&vid=83
All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).
Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the “Masters” Programme within the education system at New York based Advanced Trading Workshop (ATW).
FNArena is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.
The above mentioned videos can be accessed via the FNArena Investor Education section at https://www.fnarena.com/index4.cfm?type=dsp_front_videos)
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