Nice bounce in US stocks as retail sales, merger talks, and fiscal cliff compromises buoyed the market. The S&P is back to year start levels and regained almost all of this week’s losses. UK CPI was also lower which gave some boost to the pound and the ¥ was weaker as the trade gap widened.
So, as I said yesterday, this is the season for economic data to be a bit awry, however overnight it brought the market back into line and proved that yesterday and today is good opportunities to “buy dips” or “sell rallies” depending on the currency cross.
A headline I want to raise to your attention is this. It should resolve the fiscal cliff that was looming in Jan & Feb this year and “should” avoid another government shutdown.
DATA HIGHLIGHTS TODAY – US PPI. UK BOE Governor Speaks.
AUDUSD – A LHLL off the 50ema, a swing high shows us that we are looking at start of a new trend south. With the greenback gaining traction again we will should be testing the 88¢ level. Resistance: 9167/9300/9428 Support: 8890/8720/8550
EURUSD – A HHHL but not convincing enough for me to take the bait and trade this. That said, another HHHL and we could be looking at 1.40. Resistance: 13733/13830/14065 Support: 13488/13266/13135
GBPUSD – An inside buyer bar. I am still bullish pounds but not against the US$. Look for trades in this against other pairs, such as the Aussie or Yen. Resistance: 16474/16610/16740 Support: 16300/15950/15830
NZDUSD – As I thought, the kiwis doesn’t have the interest in getting through 84 at this time, too many sellers up here. This will track back to the 50ema now. Resistance: 8475/8535/8607 Support: 8190/8131/8100
USDCAD – A minor bounce in oil price wasn’t enough to boost the Loonie with the US$ getting stronger. We have a HHHL and some momentum divergence as it gets over extended so keep an eye out for shorting opportunities. Resistance: 10985/11060/11290 Support: 10560/10420/10195
USDJPY – Lovely bounce and HHHL bullish bar, yeehah! Almost 200 pips! Will be interesting to see if it now has the strength to crack the 105.50 area. Resistance: 105.57/108.35/110.50 Support: 103.34/101.65/100.00
GOLD – A LHLL and swing high shows potential shorting opportunity, I would prefer to wait to see more sellers before joining in. Resistance: 1265/1,307/1,350 Support: 1,225/1,180/1,040
BITCOIN (from Mt.Gox exchange) – A tight $40 range and not ready to get long or short this.