Daily Forex and Market AnalysisFOREX
The Euro rose above 1.3200 and with support at 1.3190 and again at 1.3145, we could test the resistance at 1.3314, which is the 21 DMA. USD/JPY might test 80.82 which is the 21 Month MA. This market has support at 79.00 and 78.60.
USD/CHF might test 0.9120the 0.9200, a move below 0.910 might test 0.9071 and then 0.9050. Cable might test its 200 DMA resistance which is at1.5911. Aussie might see a test of 1.0930. We have strong support at the 21 DM at 1.0680.
EQUITIES
The Dow was up 45 points to 12940. The market has broken above the short term resistance at 12900. We could see a test of 13000 next. US MARKETS ARE CLOSED FOR PRESIDENTS DAY.
Nikkei is up 128 points at 9512. We might see a test of the resistance at 9700 this week. We see resistance turned support at 9200.
COMMODITIES
Crude rose above 104 and might test 106.00 the 106.20 next.
Gold remains in a range from 1700 and 1750.
Silver is still in a tight range from 33.00-34.50.
China Eases Monetary Requirements for Banks
The Peoples Bank of China lowered the ratio of funds banks must keep as reserves. This is a move to spur lending and the economy and comes ahead of key data releases.
The People’s Bank of China reduced the ratio of funds banks need to set aside by a half a percentage point to 20.5%.
Small commercial banks will see their reserve requirements reduced to 18.5%.
This move is expected to inject near 400 billion yuan into the banking system.
The Yellow Metal Tests the Top of the Descending Triangle
GOLD: The market is testing the Descending Triangle from February.
A move higher might test the resistance at 1746.10 and then1763.00.
First support is at 1714.05 and below that could test 1677.05.
The Euro Continues to Behave With Volatility
The EUR/USD been volatile and frantic in February. The market has been trading sideways, and then broke higher than dipped lower and then reversed today.
We see strong resistance near 1.3600.
Looking down the Euros finds near term support at 1.3100 and then sees another support level at 1.3060.
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