- EUR/USD plunged this week as expected after the bearish engulfing candle on Thursday.
- USD/CAD made a high for the day 3 pips from first resistance at 1.2530/50 this week and collapsed to my buying opportunity at the 500 week moving average at 1.2440/10. A LOW FOR THE DAY EXACTLY AT THIS TARGET AND BUYING OPPORTUNITY.
- E-mini S&P June stretched to the next target of 4580/85 before turning lower to strong support at 4520/10—a low for the day almost exactly here.
- NASDAQ June shorts at strong resistance at 15100/15200 worked perfectly with a high for the day exactly here.
- E-mini Dow Jones June likely to be building a short term head & shoulders pattern with neck line at 34400.
Today's Analysis
EUR/USD continues lower as expected breaking support at 1.0960/50 for a sell signal targeting the important 5 year trend line support at 1.0850/20. Longs need stops below 1.0780. Gains are likely to be limited with resistance at 1.0950/60. Shorts need stops above 1.0980.
USD/CAD longs at the 500 week moving average at 1.2440/10 worked perfectly with a high for the day exactly here. Longs need stops below 1.2370. A break lower is an important medium term sell signal. Minor resistance at 1.2510/30, but shorts are probably too risky. A break higher targets a sell opportunity at 1.2590/1.2610. Shorts need stops above 1.2625.
E-mini S&P June holding strong support at 4520/10 targets 4530/35. I think gains are likely to be limited but above here can target look for resistance at 4555/65. If we unexpectedly continue higher, look for a retest of 4585/80, before resistance at 4625/30. However a break above 4640 opens the door to 4660/70 and a break above here is the next buy signal. We held strong support at 4520/10. Longs need stops below 4495. A break lower this week is a sell signal targeting 4480 then 4450/40.
NASDAQ June shorts at strong resistance again at 15100/15200 worked perfectly targeting 14950/900 and minor support at 14750/700. Longs are too risky I think. A break lower is a sell signal targeting 14600 and 14450/350. Strong resistance again at 15100/15200. Shorts need stops above 15350. An unexpected break higher this week is a buy signal targeting 15500/520, perhaps as far as 15650.
E-mini Dow Jones June made a high for the day about 100 ticks above first resistance at 34850/900. Shorts worked perfectly on the slide as predicted to 34600/550, perhaps as far as 34440/400 today. A break below 34400 is a sell signal targeting 2 week lows at 34200/150, probably 33990/950, perhaps as far as 33800. Strong resistance at 34850/950—shorts need stops above 35150.