The following are the intraday outlooks for USD Index (DXY), EUR/USD, USD/JPY, and SP500 as provided by the technical strategy team at SEB Group.
USD INDEX: Ready to take the final step higher. The break of the b-wave high has attracted more buying and the index is now only a whisker away from breaking above the wave three high point, 86.75. As earlier we are focusing on two possible targets, either the 161.8% extension point at 87.11 or the upper boundary of the rising channel, which runs closer to 88.20.
EUR/USD: Rechecked the neckline. The pair yesterday initially fell down to 1.2545 before rebounding back up to recheck (and validate?) the break of the “neckline”. If managing to take out 1.2545 we should also see an almost immediate extension south passing 1.2501 (targeting next 1.2335 (161.8% of the mid Oct decline) – 1.2322 (h&s target). If not managing to break lower will open for an alternative wave count, a bear triangle and as such a bounce toward 1.27/28 will take place before breaking lower, targeting the same area as in the primary scenario.
USD/JPY: Breaking past the prior peak. The assumption (however never confirmed) of a fifth wave peak in place at 110.09 has today been proven wrong given the impulsive break higher. An adjusted wave count sets a new possible target at maximum the low 112’s. The still ongoing and growing bear divergence should however still be a real cause of concern to longs.
S&P 500: Steaming ahead for a new high. With the break above 1979 the market decided to immediately go for a new high and there should now be nothing to hinder prices from exceeding the prior peak at 2015.
This content has been provided under specific arrangement with eFXnews.
eFXnews is a financial news and information service. Articles and other information distributed in this service and published on this site are provided in general terms and do not take account of or address any individual user's position. To the extent that some of these articles include suggestions as to various possible investment strategies which users might consider, they do so in only general terms without reference to the personal factors which should determine any user's investment decisions to buy or sell a specific security or currency.
The service and the content of this site are provided and distributed on the basis of “AS IS” without warranties of any kind either, express or implied, including without limitations, warranties of title or implied warranties of merchantability or fitness for a particular purpose. eFXnews and its employees, officers, directors, agents, and licensors do not also warrant the accuracy, completeness or timeliness of the information in any of the articles and other information distributed in this service and included on this site, and eFXnews hereby disclaims any such express or implied warranties; and, you hereby acknowledge that use of the service and the content of this site is at you sole risk.
In no event shall eFXnews and its employees, officers, directors, agents, and licensors will be liable to you or any third party or anyone else for any decision made or action taken by you in your reliance on any strategy and/or advice included in any article and other information distributed in this service and published in this site.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.