News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here: https://t.co/7p3jPx6nQd https://t.co/yxymjCHti6
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/yZzArpGs2h
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @JMcQueenFX here: https://t.co/WjU4oYpmf7 https://t.co/VcNnCjm0B2
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4cRhRCiv3C
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
S&P 500 Turns to 1800 as Key Support Holds

S&P 500 Turns to 1800 as Key Support Holds

2014-02-01 01:37:00
Research, Research Team
Share:

On the back of hope and confirmation that emerging markets are implementing policies to protect their currencies from the impact of the Federal Reserve’s reduction of QE3, risk assets (for example: stock markets, high yielding currencies) rallied on Wednesday. The S&P 500 has rebounded ahead of key support as a result.

Emerging market economies have been under pressure the past several weeks as 2014 has sung a different tune than 2013. Investors have started to show real concern that the Federal Reserve’s plans to end its QE3 bond-buying program will have a negative impact on riskier assets. However, on the back of a significantly stronger Turkish Lira – thanks to a surprise 5% rate hike by the Turkish central bank – traders may find that there is one less reason to be pessimistic.

The S&P 500 turned higher back to 1791.50 for a gain of +1.17% on Tuesday. After news broke of the emergency rate hike, investors became even more relieved of recent emerging market stress, with the S&P 500 climbing by another +0.50% to 1801.50 after hours. The rate hike has been interpreted (so far) as a sign that even the more vulnerable emerging markets are willing to take serious action to deal with the impact of the Federal Reserve’s taper efforts.

Forex Technical Analysis: S&P 500 (SPX500) Chart (Daily)

forex_sp500_turns_key_support_body_Picture_1.png, S&P 500 Turns to 1800 as Key Support Holds

The S&P 500 has turned higher to continue its series of higher highs and higher lows going back to November 2012. The January low has been set a higher level than the December low, and the 1760 which has previously served as a magnet for price held as support.

We have previously pointed out on the chart there are various blue boxes highlighting important lows in the S&P 500. An important observation was that the S&P 500 rallied on each Slow Stochastic “buy” signal before a new “low” relative to the last signal was set. Yesterday a “buy” signal was given.

Should traders be worried about the FOMC meeting for the S&P 500?

In forex trading, just like in any other financial asset class, past performance is not indicative of future performance. Technicians use the history of price to reveal patterns about how investors feel about a given instrument. The “buy” signal given has occurred in the same pattern as the three previous “buy” signals emerging from oversold territory: as price sets a higher high relative to the previous “buy” signal in the Slow Stochastics indicator.

If the uptrend the S&P 500 has seen is to continue, then price and the indicator should continue to march to the same beat. Or, ahead of the Federal Reserve’s meeting on Wednesday, the S&P 500 might have made what could be the next swing low in the year-plus rally. Traders can monitor this pattern going forward because if 1760 breaks, then the pattern has changed and there would be evidence that the rally would be changing.

The S&P 500 hasn’t seemed to mind whatever the Federal Reserve does. In September, when the Federal Reserve surprised traders by not tapering QE3, stock markets rallied. In December, when the Federal Reserve surprised traders by tapering QE3 by $10B to $75B per month, stock markets rallied. Fortunately, the technicals may be providing a clear level to define risk to S&P 500 bulls for the near future, at 1760.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES