SP500 Stock Index Climbs the Wall of Worry
This 4-hour chart shows the series of higher highs and higher lows which defines the trend as up. This is also important to currency traders in that as long as the stock market keeps from selling off, the USD should continue to weaken. If the US stock market does start to move down, that could trigger the risk aversion play which has previously led to a USD rally. All eyes will be on the release of the US Nonfarm Payrolls this Friday morning at 8:30 AM Eastern. That release could set the tone of the financial markets, not only for the day, but for the next month.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.