You know the old cliche that says that if at first you don’t succeed, try, try again. Today U.S. politicians are trying to get the failed Economic Stability Act of 2008 to get passe din the House of Representatives. This is try #2. Will there be another one? I very much doubt it. I’m following this issue very closely as I believe it will be a big market moving event. My understanding is that the majority of traders are expecting this bill to pass. We shall see later on today whether their bets are right.
By CHARLES BABINGTON and JULIE HIRSCHFELD DAVIS, Associated Press Writers 11 minutes ago
WASHINGTON – House members are getting another chance to vote on a financial bailout bill that has infuriated millions of voters after the Senate added tax cuts and other sweeteners and passed it handily.
Senators advanced the much-criticized measure in a 74-25 vote late Wednesday, sending it to the other side of the Capitol for a showdown vote expected Friday. The move was calculated to win over enough dissenting House members to get the bill through and reverse Monday’s stunning defeat in the House. Party leaders there planned to press rank-and-file members Thursday for the dozen converts they believe they need.
Source: AP article published on Yahoo News
Now for those of you who trade the EUR/USD like me, here is a little bit of technical analysis that may be of help with your trading: (thanks to ActionForex.com)
EUR/USD’s break of 1.3851 key medium term support indicates that whole decline from 1.6038 should have resumed. At this point, intraday bias remains on the downside as long as 1.3936 minor resistance holds. Further decline is expected to 61.8% projection of 1.6038 to 1.3881 from 1.4867 at 1.3543 next. On the upside, above 1.3936 will indicate that a short term bottom might be formed and bring consolidation. But recovery should be limited well below 1.4574 resistance and bring fall resumption.
In the bigger picture, sustained trading below 1.3851 medium term support will confirm that whole decline from 1.6038 has resumed. Next medium term target will be 61.8% retracement of 1.1639 to 1.6038 at 1.3319. On the upside, above 1.4867 resistance is needed to indicate that a medium term bottom is formed. Otherwise, medium term outlook remains bearish even in case of strong rebound.