Well, the weekend is finally here, and just a few more weeks
of this summer trading to some better trading conditions (hopefully)!
There were a few major developments this week, so let's
re-cap:
- The
EUR/USD finally scaled 1.3000 and seems to have a good foothold above.
- The
GBP/USD tagged the 1.5700 resistance today...finally
- The
S&P is above 1100 and holding...well, kind of. We are there now.
- The
AUD/USD and NZD/USD are starting to under perform based on future rate
expectations
- The
USD index is sitting at its 50% retracement of most recent massive bull
run from Nov 2009.
All in all, I think that the market is at some very pivotal areas,
and if not capitalized on shortly, the risk of a near term reversal becomes
very high.
EUR/USD.....first and foremost, we brushed the 1.3100 major
resistance (38.2%) level this week, and the jury is still out to see if we can
push much farther. Based on my blog (http://ow.ly/2irJ7) yesterday, I am having my doubts. For Sunday, we are
going to have to watch the approach to 1.3100 and once again, see how the
EUR/USD acts at those levels. For support, MAJOR support comes in at 1.2950.
The GBP/USD is facing major resistance past the 1.5700 level
at the 1.6000 psychological area. The GBP/USD strength has been uncanny, but
you can not dismiss it. For further clues on GBP strength, I will closely be
monitoring the EUR/GBP because a break below the .8300 level could provide a
floor of support in the GBP. Support now comes in at 1.5550.
The USD/JPY is now threatening a breakdown of 86.00 and
below that is what many perceive as the "line in the sand" for the Bank of
Japan at 85.00. Any move below 85.00 will be highly scrutinized by the bank and
intervention risks become great. Resistance should be strong near 87.00.
Keep your eye on the USD/CAD which is in a very large
triangle pattern on the dailies. A break below 1.0250 or above 1.0500 would
provide a pretty big move I would think.
Next week we are looking forward to a rate decision from the
Royal Bank of Australia and retail sales Monday night, ISM data Monday and
Wednesday in the US, ADP from the US then Employment figures from NZD, and rate
decisions from EUR and GBP on Thursday, then the always popular jobs report on
Friday from both Canada and the US.
Good news...we have so much data coming out next week its got
to be a volatile one, right?
Have a great weekend,
Blake Morrow
www.livemarketalerts.com
Feedback
Privacy Policy
Chat