U.S will kick off their trading week with a major economic event release on Monday which is the comments by the FOMC Member. On Wednesday, investors will look at the Federal Budget Balance. Thursday, will focus on core retail, retail sales and unemployment data. Finally, PPI m/m will take traders attention on Friday.
The USD/JPY has broken its upward channel on a 30 minute time frame. However, the price is finding its support near the 100 day moving average, but it is important to point out that the lower line of this upward channel could act as a resistance line. Moreover, as the price is trading below the 50 day (shown in green) and near the 100 day (shown in yellow) moving averages, this confirms that the bulls are losing their control.
The EUR/USD is moving towards its resistance on a 4 hour time frame. The Fibonacci retracement shows that the price has crossed its 61.8% retracement level and it is more than likely that it could complete its 100% move. The pair is trading well above the 50day (shown in green) and 100 (shown in yellow) day moving average which confirms that the bulls have strong control of the price. However, as it is approaching near its resistance level, a correction could also be on the card.
European markets are trading lower despite the fact that the US markets got closer to their all time high yesterday, and the S&P500 made another record high yesterday. Investors were surprised yesterday when the markets only saw a brief sell off after the FOMC member James Bullard confirmed yesterday that there may not be any harm to initiate a small…
