The Central Bank statements are out of the way now for the US and New Zealand with hawkish sentiment from the former and dovish from the latter. The US$ traded higher on the FOMC news but Gold is lower, no surprises there, US stocks dipped but then recovered and Oil defied the stronger US$ on the back of slightly lower than expected Oil inventory. Tomorrow brings the third and final Central Bank report for the week with the BoJ and any policy surprise here could further impact the US$.
USDX weekly: the weekly candle won’t close until tomorrow but we may see a Bull Flag breakout evolve here. Watch the upper trend line and, after that, the 100 level:
EURX weekly: lower but no Bear Flag breakout here just yet and price is still above the key 96 support level….. for now that is:
S&P500: this major market index is doing well and is looking a bit bullish or, at a minimum, quite resilient. I suggest FX traders keep an eye on this as any continued broad-based ‘risk appetite’ across stocks may flow through and impact sentiment with FX:
S&P500 daily: is back above the longer-term daily support trend line now too:
S&P500 weekly: looking more like a Bull Flag here but the 2,135 will level need to be taken out. Note that any rejection of 2,135 could also start to spell out bearish Double Top sentiment. Thus, be nimble and keep an open mind!
S&P500 weekly Cloud: is holding above the support of the weekly Cloud too for now:
S&P500 weekly Death Cross: I continue to wonder if this recent Death Cross will be as short lived and productive as the last one!
S&P500 monthly: this candle will close after tomorrow but, for now, it is rather large and bullish- engulfing:
TC Signals: some have been productive but others not so:
A/U 4hr: has given 100 pips and has also just closed below the recent 61.8% fib:
A/J 4hr: 100 here too BUT note support from the 50% fib for now:
Kiwi 4hr: rates were held but the tone was dovish. Up to 100 pips possible here too:
EUR/AUD: this signal closed for a loss of 100 with the 1.55 level acting as decent resistance, as per the monthly chart:
USD/CAD 4hr: this signal was a victim of the rally in Oil price:
Other FX: tonight brings US Advance GDP and Weekly Unemployment Claims and tomorrow brings BoJ rate news followed by CAD GDP and US Employment Cost Index.
E/U: this was hit hard by the FOMC update and has brought the Bear Flag to life:
E/J daily: this has held below the broken triangle trend line and 134 level but the 132 is now in focus as this is long term S/R but also the 61.8% fib of the recent swing high move:
U/J daily: not doing a whole lot yet but watch out tomorrow with BoJ and keep an eye on the 124 level above price:
GBP/JPY daily: this continues to hug the key 184 level:
Cable daily: keeping an eye on the triangle trend line here:
GBP/NZD 4hr: no clean-cut TC signal here but the 2.30 level is coming into focus again. Until now, SHORTS of this 2.30 have been the way to go but this might give way eventually!