Global growth concern grips markets by Mary McNamara

Some weak EUR data and comments from ECB President Draghi were added overnight to the already growing concern about global economic recovery and growth.

Fundamental events like these will always trump any developing technical patterns and this is what resulted overnight. It was a bit of a mixed bag for the markets though with US stocks and some FX risk pairs falling heavily but other instruments trading rather flat. 

S&P500: the 30 min chart show the roller coaster ride here over the last few sessions. Friday will be the key session here to see whether the 1,900 level can hold out the week:

S&P30min

USDX: the USD index is testing the broken daily support trend line:

USDX daily:

USDXdaily

USDX 4hr: watching the new ‘flag’ pattern building here. :

USDX4

Gold: hasn’t reacted too much to the growing ‘fear':

Gold4hr

Forex: this choppiness has meant no new TC signals:

E/U: has pulled back following ECB President Draghi’s comments but has managed to hold up and out of the channel, for the time being at least. It has slipped back into the 4hr Cloud though:

EU4 EU4hrCloud

A/U: the AUD has had the double whammy of weaker stocks but also news that China plans to reintroduce tariffs onto coal imports. We may be back to the ‘Bear Flag’ scenario here for the A/U!

AU4 AU4hrCloud

Cable: also weaker and didn’t manage to get back above the 4hr Cloud: 

GU4 GU4Cloud

Kiwi: pulled lower with a stronger USD and the fall with stocks. This might be shaping up into a ‘Bear Flag’ too!

Kiwi4 Kiwi4hrCloud

U/J: hasn’t done too much over the last 24 hrs but is still below the 4hr Cloud:

UJ4 UJ4Cloud

A/J: this looks bearish as it has broken below the support of the daily 200 EMA. It is below the daily and 4hr Cloud:

AJ4

AJ4

E/J: this pair was rejected by the 4hr Cloud:

EJ4 EJ4hrCloud

Loonie: USD/CAD got a boost from the stronger USD and also a weaker CAD as Oil was punished lower overnight. Note how this pair bounced up off 4hr Cloud support. There is CAD Employment data tonight:

Loonie4hr Loonie4hrCloud

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