TheLFB-Forex.com The Global Forex Trader Portal
S&P Case Shiller Housing Price and Consumer Confidence report came out better than expected this morning. Interestingly, equities did not move higher in correlation to the U.S. releases that came out today as traders would have expected. S&P futures slid from its latest 1037 highs to its current spot at 1026. Those reports, however, are another indication that the economy is improving, but the technical bounce to the downside on equities is likely to come as “taking profits” seem to be in play.
“The S&P futures prices are still trading in the 1030-50 resistance zone of the wave five target, which is signaling for a corrective bounce to the down-side,” said the TheLFB Elliott Wave team. This bounce could create a higher U.S. dollar value against the majors, which will improve even more if commodities move to the downside. Currently, oil is trading -3.51% around $72 per barrel, while Gold is just above the zero, so any down-trend continuation on oil will probably create a higher U.S. dollar which will confirm a temporary top on equities. As such, traders with a short bias should pay more attention on commodity currencies such as the Canadian and Australian dollars against the Usd. In TheLFB public Chart of the Day area, traders can find important price points for near-term moves on these two currencies.
Free Training Course Notice:
Understanding the global market trade links to forex will be key to creating stability while at the work station. Sign up for our free training Seminar: Trade Forex With A Global Commodity Plan.
Register for the Wednesday Aug 26 09 session 18:00 EDT
Or register for the Sunday Aug 30 09 session 15:00 EDT