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 fallingÂ heavily butÂ other instruments trading ratherÂ flat.Â
S&P500: the 30 min chart show the roller coaster ride here over the last fewÂ sessions. Friday will be the key session here to see whether the 1,900 level can hold out the week:
USDX: the USD index is testing the broken daily support trend line:
USDX 4hr: watching the new ‘flag’ pattern building here. :
Gold: hasn’t reacted too much to the growing ‘fear':
Forex:Â this choppiness has meant no new TC signals:
E/U: has pulled back following ECB President Draghi’s commentsÂ 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:
A/U: the AUD has had the double whammy of weaker stocks but also news thatÂ ChinaÂ plans to reintroduce tariffsÂ onto coal imports. We may be back to the ‘Bear Flag’ scenario here for the A/U!
Cable: also weaker and didn’t manage to get back above the 4hr Cloud:Â
Kiwi: pulled lower with a stronger USD and the fall with stocks. This might be shaping up into a ‘Bear Flag’ too!
U/J: hasn’t done too much over the last 24 hrs but is still below the 4hr Cloud:
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:
E/J: this pair was rejected by the 4hr Cloud:
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: