These 2 Levels Will Prove Pivotal
Toppy Market? FX Erratic
These are the two phrases that keep running
through my head. Whether it is the geo-political situation or simply
anticipation of tomorrow’s GDP report, one thing is for sure, there is not much
conviction either way at present. This is fine for HVT
as intra-day moves have been solid with “story” stocks continuing to offer the
best trades each day. For FX, the picture has been less compelling. Given that
most FX trades are “position” oriented, it has been a roller coaster ride in the
last few days, hopefully some directional bias will enter the market after
today.
Going back to the first part of today’s title,
the S&P’s do a look a bit toppy. While that is of little value in terms of HVT,
it does plant a seed that if support is broken, it will be time to step up to
the plate as volatility will ratchet up a few notches. At present, the S&P’s
are putting in a series of declining tops, yet remains supported by a trend-line
around 1125 and the 50-day EMA at 1128. These levels will prove pivotal in the
days ahead.
The Dollar Index remains solid, however, it
appears as though it is digesting its’ recent gains. This has caused some
short-term weakness, however, like the S&P’s, it remains well supported. Key
areas of support are seen at 90.54. A break above 90.85 should renew pressure
on the EUR and GBP.Â
For now, remain patient, the GDP report will be the catalyst for future price
direction.
As always, feel free to send me your comments and
questions.
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