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Macro Analysis 8/17/2012

Posted by Momentum Trader on August 19th, 2012

Equity markets are in the throes of the "dog days" of summer and had a sleepy week with an upside bias. Thursday was the pivotal day as a number of indexes penetrated significant resistance which signals a short to intermediate term bull market.

 

German Chancellor Angela Merkel announced on 30 May that Germany, the world's fourth-largest economy and Europe's biggest, would shutter all of its 17 nuclear power plants between 2015 and 2022, an extraordinary commitment, given that they currently produce about 28 percent of the country's electricity.

EUR/USD breaks the 1.4148 minor support line and drops to the 25 days low, as the Eurozone debt crisis spirals. Concerns over Greece not being able to meet its budget deficit to secure another round of loans from the EU members, is putting heavy downside pressure on the Euro.

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