FXstreet.com (Barcelona) - The rebounding in the mergers and acquisitions pace, higher shares in drugs and technology and 3Q investor sentiment improvement has fueled Wall Street to bounce after three days of losses and the red wave in Asian and European Markets, Oil has recovered its initial losses, gold is trading higher and Yen continues in consolidation mode after the recent strengthening movement.
Dow Jones is posting 1.22% daily gains to trade above 9,780 level, S&P 500 advances 1.36% and Nasdaq increases its index 1.77% so far today. Oil has eased its previous losses and it is posting 0.53% higher to trade close to 66.30. Gold advances 0.20% to trade at 993.70.
On the currency field, The latest Dollar's attempt to recover against yen from 8 months low at 88.22 has found resistance at 89.70 and currently pair is sliding to 89.20/30 zone.
Michael J. Malpede, Easy Forex's analyst, comments: USD is trading higher and the JPY trades at an eight month high versus the USD as the trade reacts to weaker Asian equity markets and confusion over Japan's JPY intervention policy, EUR rallied after the Merkel election victory in Germany EUR gains were limited by selling in the EUR/JPY cross, UK house prices rise the most in two years, BOE may cut its remuneration rate, commodity currencies trade lower tracking weaker Asian equities and lower crude prices.
The Sterling has been retreated at 1.5900 level against the Dollar and it is trading around 1.5870. GBP/USD remains under pressure, with 4 hours charts showing current corrective movement is already complete and pair setting for a new down leg. Under 1.5830 area, first support for next hour, pair could extend the downside rally to the 1.5760 today's low zone, ahead of 1.5710 area. Resistances above 1.5900/20 come at 1.5945, 1.5990 and the 1.6060 level, not seen at this point.
EUR/USD is testing 1.4675, 55MA hourly chart, after rising around 110 pips from 2-week low at 1.4560. According to Mohammed Isah, analyst at FXTechtrategy, On the whole, though biased to the upside medium term ,EUR is now being challenged by corrective weakness: The bigger test if continued corrective declines are seen lies at the 1.4446 level, its Aug 09 high. That level which now coincides with its MT rising trendlineshould provide a strong support and push the pair back up again. On the other hand, in order for its medium term uptrend to be triggered and its present corrective weakness cut short, a return above the 1.4844 level must occur putting the next upside at the 1.4875 level, representing its Sept 21'09 high ahead of the its psycho level at 1.5000 and then the 1.5082 level, its Aug 10'08 high.
USD/CHF has falling further from 1-week high at 1.0375 to test 55 and 200 MA hourly chart level at 1.0290. Currently pair is trading around 1.0300/10. Valeria Bednarik, FXstreet.com collaborator, comments: Hourly charts had turned slightly bearish after failing to break above 1.0370 resistance zone, yet pair remains hovering around key 1.0320 /30 area. Indicators had no definitions for the pair in 1 hour charts, but mostly, pair will follow stocks and risk mood.
Bednarik provides us with her levels: Support levels: 1.0280 1.0250 1.0210. Resistance levels: 1.0330 1.0370 1.0420.