As traders, our job is not easy (adapted from dailyfx article) Tenet #1 Old support can become new resistance, and old resistance can become new support One of the greatest aspects of price action is...
NZD/USD Bounces after Dip into Former Highs (based on dailydx article)
- NZDUSD has responded to resistance above .8400. Tuesday’s high is just shy of the 9/19 and 10/24 highs at .8435/45. - Longer term trend remains sideways, possibly within the confines of a triangle (since 2011). In general, the market has entered longer term resistance (highs in March 2012, December 2012, February 2013, and October 2013 are from .8471 to .8543).
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CRUDE OIL TECHNICAL ANALYSIS (based on dailyfx article)
Prices pushed higher as expected after putting in a bullish Piercing Line candlestick pattern. A push above resistance at 94.85, the 38.2% Fibonacci retracement, exposes the 50% level at 95.97. Reversing below support at 93.46, the 23.6% Fib, aims for the January 9 low at 91.21.
S&P 500 TECHNICAL ANALYSIS (based on dailyfx article)
Prices are testing resistance in the 1844.90-49.10 area, marked by the December 31 high and the 14.6% Fibonacci expansion. A break higher exposes the 23.6% level at 1863.10. Near-term support is at 1819.60, the 14.6% Fib retracement.
The dollar appreciated against the Japanese Yen for the third consecutive day on positive data coming from the U.S. economy. The euro weakened against the dollar, reaching 1.3622 level. The Australian dollar fell against its counterparts last three years minimum reached after a surprising increase in unemployment. European equity markets gained ground after the World Bank increased global economic growth forecast. U.S. stocks have been increasing following the publication than expected indicator of manufacturing sector. Asian capital market had a fluctuating trend data today before the U.S. labor market.
EUR/USD Sitting on Trendline Support ahead of CPI (based on dailyfx article)
- EURUSD is testing support from the line that extends off of the July, November, and early January highs. A break would open up the December low at 1.3524 and August high/November 21 low at 1.3399-1.3451. - As long as price is holding the line, a bearish call is premature as upward pressure remains possible towards the mid-1.3700s.
Closing in on an SP 500 Top ( based on thetechnicaltraders.com article)
The SP 500 has been in Major wave Elliott Wave 3 up of Primary wave 3 from 1267 by our best projected counts. Our technical analysis of stock trends predicted back in early September a large rally up in the SP 500 to 1822-1829, which we managed to see hit just 3 months later from the mid 1600’s.
Below is our updated best projection on the SP 500 market trend analysis and near term action, with potential of course for a blow off reversal top over the 1868 area. For now we would watch 1868 and we would be buyers of GOLD as we have been saying for several weeks during this final window into early February.