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Market Wire Update:
Equities Dominate Forex Flows- Again
Cable, yen and cad are stuck at their daily chart simple moving average areas, while euro and swissy play mirror-image moves, and aussie correlates itself to gold moves. After a major drop in the previous session's forex valuations, that was linked to a drop in U.S. stocks, common sense tells us that positive equity trade will be required for the major currencies to move back higher.
The global equity futures market is still in the red, and therefore signaling that the buying of the dollar may not be completed just yet. The 75.50 area now becomes the swing-point for the dollar index. A four hour close above that price point signals a market that is willing to test the resolve of Usd bears.
There are swing points at 1075 long, and 1055 short, on S&P Futures trade, and a four hour chart close above or below will signal near-term direction.
The Usd and S&P are inversely correlated; negative stocks allow the dollar to go long.
Oil signaled a 4 hour short signal that looked to target 77.80, but was initially reversed, a four hour close either side of that will signal near-term direction.
Gold still has a long overall trend, on all time-frames, look for continued strength as a play against future inflation. The 1045 area is the four hour chart swing point area to work a direction from.
Currency Outlook:
Euro 4 Hour chart close above 1.4850 to hold long bias.
Cable 4 Hour chart close above 1.6250 to go long, or close under to go short.
Aussie 4 Hour chart close above 0.9150 to hold long.
Cad 4 Hour chart close above 1.0680 to help set a long bias.
Swissy 4 Hour chart close below 1.0200 to remain bearish.
Yen 4 Hour chart close above 91.80 to remain bullish.