Stocks and Dollars

The Aussie dollar has just broken above trendline resistance on the 4 hour chart. Price action has been consolidating since the beginning of the year and now both the 200 day simple moving average and parity will provide immediate resistance. Since making a new multi-decade high at 1.0257, the pair

U.S. Dollar Trading (USD) with selling overdone on Friday the market was buoyant seeing most pairs gain against the Dollar. Oil was extremely strong with Brent Crude breaking above $101 a barrel. Economic Data was strong with Chicago PMI jumping to 68.8 vs. 66.8 previously. In US stocks, DJIA +68

Risk appetite partly rebounded last night helped by economic data and a more sanguine view of Egypt. The S&P500 is currently up 0.8%. Among the batch of US data released, consumer spending and the Chicago PMI were the talking points, surprising higher. An early estimate of Eurozone CPI also surprised

Much has been written over the last week on the Egypt situation and the potential consequences for that country, for the region and for the world. We, in this piece, will try to shed some light on the potential effects on the U.S. economy. However, before continuing with this it

No losses yesterday but I haven’t given up on the risk of a pullback to the broad 110.40-90 area. Even in a larger bullish structure I’d expect this. However, equally I wouldn’t want a break above 112.70… We’ll first need loss of the 112.18 low and once seen this should

Euro 1.3725 Initial support at 1.3541 (Jan 24 low) followed by 1.3499 (Dec 14 low). Initial resistance is now located at 1.3758 (Jan 27 high) followed by 1.3825 (Nov 10 high)

EUR/USD Today’s support: – 1.3632, 1.3579 and 1.3546(main), where correction is possible. Break would give 1.3518, where correction also may be. Then follows 1.3500. Break of the latter would result in 1.3486. If a strong impulse, we would see 1.3447. Continuation will give 1.3412.

The cable, by analogy to euro, has continued growth, transforming the prospective Zigzag in the impulse. Probably wave, the wave [b] of B becomes the Expanded Flat correction. At the same time, growth of pair increases probability of realisation of the alternative scenario. But while critical level isn’t overcome, there