Forex Majors & Cross Rates
A true test of defining a probable trend direction for the USD compared with the S&P versus the currency majors will be confirmed within the last trading quarter of the year. The upcoming trading week would be critical as a probable breakout for these two major leading indicators will take the lead for the rest of the year.
Although, we remain more positive with the continued strength of the USD as corporate earning results may likewise be mix to moderately good as manufacturing would slowly provide a better outcome moving forward for the economy. This week's economic calendar of reports would only provide a glimpse of what some analyst & trader / investors have already anticipated and the uncertainty of global growth still taking over market sentiments in general.
Meanwhile, the challenging technicals from the chart formations of the foreign exchange and commodity markets have expressed a time-line for any particular good breakouts on the US Dollar and the S&P500 index. With the USDx maintaining a sustainable support level @78.50/80 is valid while daily corrective moves are taking place every trading week. As compared with the S&P500 level of 1425.00 serves as the critical extended trend line support from its 1250.00 low since the first week of June. Though, a technically bearish top configuration has been identified that led to the current correction from its high @1465.50-1470.00 range and currently at the 1425.00 levels of support. Watching these two markets would very important for the week's trading.
No comments:
Post a Comment