Yesterday US stocks rallied once again, although unemployment claims were higher than expected, reaching 403K with a forecast of 394K. The Dow rose 52.45 points, to 12505.99, the Nasdaq Composite gained 17.65, to 2,820.16,and the Standard & Poor’s 500-stock index added 7.02, to 1,337.38. The gold set another new record, touching $1509 an ounce, as a weaker dollar and debt concerns boosted the metal’s appeal as an alternative investment. The dollar slid to the lowest level since August 2008 against a basket of six major currencies yesterday on speculation that the Federal Reserve does not intend to raise the interest rate soon.
The EURUSD completed a rally of almost 500 pips in the last 3 days, right after which it dropped by a little over 100 pips, to leave a daily shooting-star above the support line of 1.4500. The USDJPY broke yesterday the Fibonacci 38.2% of the 900-pip-rally starting on mid-March, and is probably heading towards the next support at 81.00, where previous support exists along with Fibonacci 50%.
The AUD, NZD, and CAD – all currencies of commodities exporters – kept strengthening against the USD, mainly due to the rising prices of gold, crude oil, and other commodities. While the AUDUSD is at all-times-high around 1.0750, the NZDUSD has to go up 200 pips to reach its highest rate of 0.8213 set in March 2008, and the USDCAD has to drop by almost 500 pips to reach its lowest rate of 0.9057 set in November 2007.
Today’s Important Economic Announcements (GMT)
Today is Good Friday. All banks are closed and no important announcements are expected.
GBPUSD
The British pound finally managed yesterday to breach the strong resistance line of 1.6400, doing so with a 200-pip-candle. This may be a strong bullish signal, but 2 major obstacles may tamper with this pair’s rally-attempts: the monthly 52-EMA around 1.6650 and the historical resistance line around 1.6750. These two should not be ignored when looking for buying opportunities in this pair. I would recommend waiting for the price to go back down to 1.6420 and then taking Long again to 1.6600.
Stop Loss: 1.6350
Take Profit: 1.6600
GPBJPY
The GBPJPY is stuck below the resistance line of 135.80 which was broken last week. The daily chart shows that the last 5 candles are hovering between the EMA 26 & 52 below and the EMA 9 & 13 above, whereas the weekly chart shows an almost complete convergence of these 4 EMAs, supporting the price tightly. Currently it is hard to tell where this pair is going in the short term, but the weekly chart may suggest a possible coming rally. In the meantime – wait for the symmetrical triangle in the H4 chart to be breached or broken.
S&P500
This index has reached for the third month in a row the resistance level around 1335 and is currently supported by EMA 9 on the H4 chart as well as on the weekly chart. Closing on a daily basis above 1335 will be the best signal to go Long on this index, with a careful Stop Loss below the breached resistance line around 1325. Notice that the last breach on February 17 failed to take this pair much higher.
Stop Loss: 1325
Take Profit: 1369
Published by www.SolidityBrokers.com
