The FX indices have chopped sideways and the S&P500 large-cap stock index has printed an ‘Inside’ candle. Both types of price action point to ‘indecision’ following last weeks NFP and the implications this jobs data has for US interest rates. Despite this latest pause, the TC pip tally for signals carried over from last week is up to 560 pips! Some will be encouraged by today’s US stock bounce BUT, remember, ‘one swallow does not a summer make’! I would not be surprised to see a bit more of a pullback here.
USDX 4hr: Chopping sideways BUT is this just another ‘Bull Flag’ in the making though?
EURX 4hr: also choppy but holding above the 96 level that is a major ‘Double Bottom’. This shouldn’t be ignored!
S&P500: printed an indecision-style ‘Inside’ candle following last Friday’s plunge. A bit more of a pullback, possibly to the 61.8% Fib could still be in store here:
Silver and Gold: both are a bit lower but still near key support levels:
Silver: below $16 BUT holding above recent trend line support for the time being:
Gold 4hr: below $1,180 support but not too far from there:
TC Signals: These signal have carried over from last week and all but one are doing well. There are no new TC signals so far this week.
E/J: has given up to 280 pips:
U/J: 140 pips here:
Kiwi: 140 pips BUT note how price is struggling at the 0.735 level. Watch for any reaction to today’s Chinese data:
Loonie: this is down 10 pips and may close off:
Other FX: there is a bit of AUD and CNY data today so watch for reaction on AUD and NZD pairs. GBP news tonight.
A/U: still chopping around between 0.785 and 0.765. Watch for any reaction to today’s AUD and CNY data:
A/J: no momentum here but also for watch for any reaction to AUD and CNY data:
Cable: this has also printed an indecision style ‘Inside’ candle but the bounce off 1.50 support is encouraging. Any weekly break and hold below 1.50 would support a Bear Flag:
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