EUR briefly broke above 1.17 for the first time since Aug’15 with support initially from firm German IFO survey’s this morning, while much of the upside had stemmed from cross buying in EUR/GBP which is just north of 0.8950.

JPY notably weaker across the board with USD/JPY breaching 111.00 amid the surge higher in equity markets post a slew of strong financial results from large US firms. Additionally, with global bond yields tracking higher, fresh YCC affirmation is likely with the Japanese 10Y yield looking at 0.1% yet again.

NZD saw rare selling pressure in Asia trade amid news that New Zealand Officials stated that a contagious disease has been found in 14 cattle. With New Zealand being one of the top five largest exporters of beef, this weighed on the Kiwi dollar. The volatility in NZD led into early European trade, and despite NZD/USD bouncing ahead of 0.74, a Kiwi recovery was not seen in AUD/NZD, trading though overnight highs in the European session. A 1.07 test in AUD/NZD is possible as investors eye comments from RBNZ Assistant Gov. McDermott who may look to tame the NZD advances.

News Source

Dollar Index H4

Price has stopped making lower lows though the market is still bearish. A break above WPP will indicate a change in trend.

US10Y H4

In our last post we expected a higher high off of support while noting that Bears selling at WM3 were targeting WM1. At the time we did not have a lower low though one was formed during Asia which started the move lower. Price is now approaching the weekly target WM1 (confluence with MM2)

S&P500 H4

Price has broken above MR2 and has made a new record high. WPP gives us a target of MR2 with resistance eyed at WR1 .

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.