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Chart Of The Day Update:
S&P Doji Signals Short Euro
At the start of a new week in Asian trade the U.S. dollar was moved lower by a higher Japanese and Chinese session of trade. The EUR/USD traded up, into the1.5040-1.5060 region for the third time in the past four trading days, before today’s European and U.S. stock markets reversed tack and stock values lower, and conversely sent the dollar higher.
S&P Futures have broken through the 1070 support area set over the past week, on near-term down-trend pressure that stated to show, and was highlighted by TheLFB technical team’s article last Wednesday, when the double top on the four hour chart was formed.
TheLFB Charting
S&P Futures 4h view (Chart set-up from 22nd Oct
In that article TheLFB team also noted that S&P Futures touched the weekly trend line resistance connected from the top of 2007, where a weekly close below would signal that the top is in.
Last week’s closing price was around 1076 after the earlier 1098 top with a doji candle structure shown on the weekly chart below.
TheLFB Charting: S&P Futures Weekly view Weekly
As such, traders may look on the long side of the U.S. dollar so long as the 1098 top of the S&P doji holds.
Considering the S&P futures weekly chart review, TheLFB technical team is looking for move lower on the EUR/USD daily chart as the five wave pattern from the 1.2500 zone, to the current highs looks complete.
TheLFB Charting: EUR/USD Daily Elliott Wave view