Looking at the economic calendar, there is very little to get the market excited. After all, the Asian session features such little followed economic announcements as Japanese Nationwide Department Store Sales number, as well as the New Motor Vehicle Sales out of Australia. Neither one of these announcements will have much of an effect on anything beyond perhaps the stock price of automobile Manufacturers in Australia, and perhaps of course the odd department store in Tokyo.
With that being the case though, looking at the charts we can see that there are a couple of decent technical setups. On the weekly chart, the EUR/USD pair has in fact formed a hammer for the third week in a row. That is a very bullish sign, and as a result we suspect that any move above the top of the hammer for the week last week could in fact send the EUR/USD pair heading towards the 1.35 handle. Quite frankly, the Euro is oversold at this point anyway.
The NZD/USD pair looks very similar, and for those of you that have the ability to trade the New Zealand dollar, it looks as if we have found support at the bottom of a significant consolidation area, and as a result above the 0.85 level, we believe that the market is in fact going to go higher – perhaps as high as 0.88 given enough time.
The S&P 500 had a very bizarre day during the session on Friday, as we ended up reclaiming quite a bit of losses. Initially the market gapped higher, and then turned back around and fell due to news of shooting in eastern Ukraine again, however you can see that the 1940 level offered enough support to turn things back around and form a bit of a hammer. This leads us to believe that the market is in fact going to try to continue to grind higher. There is a significant amount of resistance above, but quite frankly we are still in an uptrend and as a result have no interest in selling this market.
The Light Sweet Crude or WTI market ended up breaking back above the $96.50 handle, and completely wiping out the losses that we found on Thursday during a very erratic session on Friday. With that being said, we believe that the oil markets may in fact start to pick up a little bit of momentum down here as we continue to try and form a bit of a base at the bottom.