A snapshot view of yesterday’s events from the New York - London session:
- Investor confidence continued to grow in the US following positive corporate earning
- US Existing home sales were above expectations for the first time in 7 months, however they are still lower than previous.
- The US Index closed just below 80 to produce a Hanging Man Reversal Candle and warn of near-term weakness to recent gains.
- GBP/JPY continues to look increasingly bullish with our longer-term target set to 179
- Fears of deflation in Eurozone have reignited following the decline in the inflation rate to 0.5%
- 5yr Notes were up to support investor confidence and VIX remained relatively flat for the day
FOREX:
AUD/USD Confirmed bullish wedge and now targeting 0.94 and 0.95; Key data for Oz CPI and HSBC Flash PMI from China
EUR/USD 2nd Daily Inverted Hammer within potential bullish wedge above 1.3750
GBP/USD closed near multi-year highs and appears set for a breakout
USD/CAD Holds above 1.10 which remains to be the line in the sand
USD/CHF Hit both our bearish and bullish targets yesterday; Potential Bearish Wedge below 0.88610
USD/JPY Rikshaw Man Doji below Monthly pivot warns to near-term weakness
NZD/USD Morning Star Reversal highlights potential swing low above 0.8550
INDICES:
US closed higher for 6th consecutive session as Risk-On sentiment continues
European equities have enjoyed a similar bullish run
COMMODITIES:
Gold hit our 1279 target identified in yesterday's webinar however overall the bearish movement is losing momentum
Silver continues to drift towards $19 but may fall short of the target; potential for both Gold and Silver to retrace against recent losses
