US equities saw a strange mix by their close with S&P barely moving and DJIA down 0.34% while NASDAQ saw a strong 0.86% gain as markets mostly centered on corporate results. For currencies we saw daily close generally suggesting loss of momentum though the pullback Friday was limited compared to the gains we have seen for the week. Ahead we are likely to see more of this mixed market with little impetus expected today though we risk still a technical correction for last weeks rally.
At the close Friday saw a high wave spinning top to suggest lost momentum. Daily indicators show stochastic with a bear cross though still overbought and macd’s rising. From the 4H picture we are inside a congestion with candles suggesting indecision though indicators see a confluence of bears from both macd and stochastic. Hourly indicators show a mixed view with stochastic crossing higher though macd is pointing down and candles themselves have formed a double top. Given the pullback from opening highs in commodities consider shorts from just under 0.8674 with tight stops at 0.8700. Alternative entry will be a close under the 0.8625 double top trigger.
Friday saw a limited pullback in EURUSD following a strong rally through out the week. We have daily indicators bullish stochastic overbought while macd is also pushing higher. In intraday charts we are seeing mixed signals with macd’s flat and stochastic rising. Hourly charts show a flat macd while stochastic is poised for a bullish cross. Note we have strong resistances ahead of us in Euro, given the absence of fresh impetus we prefer looking for a rejection from the 1.4437 area. Consider shorts from just under 1.4437 with stops at 1.4460. Buys may only be considered from above 1.4280.
Friday turned out to be a high wave spinning top suggesting lost momentum while AUDUSD for now is still well above the daily EMA lines. Other indicators show stochastic overbought while macd’s are rising. Intraday we have 4H macd’s poised at a bear cross while stochastic is heading for oversold levels, note we have just pushed below the congestion floor last Thursday, 1.0828. Hourly indicators shows a confluence of bears. Given the uptrend in commodities we prefer a buy on dips approach for Aussy consider longs from just above 1.0787 the previous key resistance level.
We find ourselves closing the previous week above the SHS neckline to suggest we now look forward to further gains in the coming days. Among the indicators we have a bullish macd and an overbought stochastic. From the 4H picture we appear to have a small broadening pattern as well while your macd are poised at a bearish cross and stochastic heads for oversold levels. We saw an upside gap at the open only to see market sell-off and cover. Hourly indicators also see a confluence of bears. For now we prefer looking for shorts from under 1.6346 for 1.6263. Alternative entry will be a close below the 1.6263 for 1.6193 a strong support.
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.