The US$ weakness that appeared in yesterday’s Asian session was well gone by the US session. This about-face action seems a little surprising as some weaker than expected home sales data might have been expected to reinforce a possible rate hike delay which, in turn, one may have thought would weaken the US$. Some Fed commentary suggested a 2015 rate hike was still on though, so, that seemed to trump the data. European and US stocks, minus Bio-techs, ended higher too in a kind of Go figure? moment for me. I always had great respect for the Robot in Lost in Space and his words…Does Not Compute and Danger Will Robinson come to mind right now! These might be wise words of warning for the current markets!
FX Indices: both are back to being divergent on their Ichimoku 4hr and daily charts and periods like this often lead to choppy action on EUR and US$ pairs so I’m cautious here.
USDX weekly: bouncing up off 95.50 support and still range bound:
EURX weekly: a bit lower by the end of the US session but, also, still range bound:
S&P500: a bit higher on the day but choppy and still closed below the major 2,000 tech level:
Gold 4hr: has respected the 61.8% fib still due to US$ strength…for now that is. There is monthly pivot and 4hr 200 EMA support below current price though:
TC Signals: it is with reservation I see two new TC signal on the 4hr E/U and NZD/USD charts from my 3 am candle. The FX indices are divergent and this often spells trouble for signals like this.
Kiwi 4hr: I’m wary here as there is strong support below current price near 0.625. There is also an RBNZ speech today that could stir things up here a it:
Other FX: It is a Bank Holiday in Japan again today and there is no high impact scheduled news.
U/J 4hr: still range bound BUT a new TC signal is trying to form here:
GBP/JPY 4hr: range bound here for now too BUT watch for any TL breaks with increased momentum:
E/J 4hr: I had suggested this might target 134 and it is still on track for that at the moment:
A/U 4hr: lower but no new 4hr TC signal:
Cable 4hr: there is strong support under current price from the 1.55 level, monthly pivot and 4hr 200 EMA. Watch for any break of these though to see if the trend line kicks in at all as, if not, then I would expect price to fall and test the 61.8% fib near 1.535 and, after that, 1.50. Also, for any bullish hold here to possibly lend support to LONG GBP/AUD and or GBP/NZD trades:
GBP/NZD: this pair is up testing a major trend line again and traders would be well advised to watch for any trend line breakout here. Keep an eye on the NZD/USD and GBP/USD too for early clues to any directional move on the GBP/NZD:
GBP/AUD: this is also trading higher although still range bound within a triangle too BUT it is trying to trigger a new TC signal BUT price action is below the 4hr Cloud for now.
Loonie 4hr: ugly!