SPX500 Support Holds
The US stock market SPX500 index found support just above the 1171.10 low. Last week we noted this price level as somewhat of a line in the sand. A move down through this support level might open the door to more selling and lower lows. For currency traders, that could mean a stronger USD as traders move from risk acceptance to risk adversion. We did see some of that USD buying yesterday, so traders are watching and reacting. If the SPX500 is able to rally from here without a move down through support, the USD might continue to weaken. But if the stock market does fall from here, that could trigger a change in the trend of the USD from down to up.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.