Pending home sales slipped 0.5% February however 9.2% higher from the same period of last year; the numbers are expected to have a mild effect on markets as risk-appetite dominates the trade.
Risk-on trade was ignited earlier today from Germany; according to report from the germany, some officials hinted that the country is poised to agree on increasing the euro zone firewall by the weekend. On the other hand; dovish comments from the FED's boss Mr. Bernanke mentioning that more accommodative policies are needed hinting another rounded of easing remains possible.
The U.S. dollar sold off sharply against its major counterparts, where the most traded currency broke 1.3200 pivot . The EUR/USD has broken the neckline of an inverted head and shoulders pattern around 1.3290 and currently pushing to the upside towards the ascending resistance and 1.3350 level shown on image. The breach hints further gains could be seen within the upcoming sessions eying the recent swing high at 1.3500 handle. 1.3290-1.3280 should act as a major support now where any downside correction should be considered as another opportunity to the upside. The bullish bias shall remain in favor so long as the ascending trend line shown above remains intact.
Cable rallied sharply as well, trading above the recent resistance level at 1.5915. The door is open now for another test of February's high at 1.5990 and 1.6000 psychological level. In general, 1.6000 should form a strong resistance; thus we need to see multi-day of trading above the level to confirm a more sustained bullish move and a continuation of the recent rally initially towards 1.6150 area. On the other hand a dip below 1.5900 again may put price under pressure again.
After breaching the double top pattern shown on image ; the USD/JPY bearish action was stopped at 81.95 major support level where price has rebounded again currently testing areas around the neckline of the double top. Now; we spotted a short term inverted head and shoulders pattern, with a neckline around 83.00 area , thus if we witness a break with steady trading above 83.00 followed 83.20 that shall confirm the continuation of the recently seen bullish trend to 84.00-84.20, where if taken 85.50 shall be the next major stop. To the downside; a dip below 82.50 could lead to another downside attempt to 82.00.
Gold completed a double bottom reversal pattern after breaching the neckline at 1670,00, now we look for a test of the 50-days Simple moving average currently around 1707,00(colored in blue), followed by 1716,00 horizontal resistance. Any pullback should be halted at the breached resistance which should turn into support now at 1670,00.