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.

Free Trading Guides
EUR/USD
Mixed
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
Gold
Bullish
Oil - US Crude
Bullish
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
Bitcoin
Mixed
More View more
Real Time News
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
  • The gold-silver ratio is simple. It is the number of silver ounces you would need to trade to receive one ounce of #gold at current market prices. Find out how you can use this in your trading strategy here:https://t.co/kh5DZvv5ib $XAUUSD https://t.co/eJGODpfTNc
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 https://t.co/DoVBd1l1oO
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
  • Markets are trying to maintain a bullish tilt as a new week rolls around, a look ahead at the charts of the #Dow, #DAX, and #FTSE. Get your technical analysis on major world indices from @PaulRobinsonFX here: https://t.co/bYjRDvQsdM https://t.co/mbg0rUbv3K
  • Trade conflict is clearly awful for the broad world economy, but some countries are already benefiting from it. More stand to do so. Spotting them early could be profitable. Get your update on the #tradewar from @DavidCottleFX here: https://t.co/og0VAPAqwm https://t.co/xB8hYUj4OA
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
S&P 500 Drops Reversal Warning, Equities Brace. Yen to Extend Rise

S&P 500 Drops Reversal Warning, Equities Brace. Yen to Extend Rise

2019-04-09 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • USD/JPY tumbles as S&P 500 leaves behind reversal warning
  • EU-US trade war fears, IMF 2019 outlook and Italy sink DAX
  • Nikkei 225 may fall with AUD as Japanese Yen extends rally

Find out what the #1 mistake that traders make is and how you can fix it!

FX News Tuesday

The anti-risk Japanese Yen was the best-performing major on Tuesday, rising alongside a downturn in market sentiment as anticipated. This was triggered by a trio of concerning developments. First, the United States escalated trade tensions with the European Union, threatening to impose $11b in tariffs on their imports because of EU subsidies for Airbus, a major commercial aircraft maker.

Then later in the day, Italy trimmed 2019 GDP estimates to 0.1% from 1.0% as it raised this year’s budget deficit forecast to 2.5%. The latter has been a sticking issue between the country and with Brussels, increasing concerns about a Eurozone debt crisis. Lastly, the IMF cut the 2019 global outlook to its weakest since the 2008 financial crisis.

After the German DAX 30 tumbled by the most in over two weeks (as expected), the S&P 500 followed suit as it ended its longest winning streak (8 days) since early October. US front-end government bond prices rallied, signaling risk aversion that engulfed the markets. The haven-linked US Dollar was little changed though, mainly due to losses during the first half of the trading session.

S&P 500 Technical Analysis

Taking a look at the more liquid futures, the S&P 500 left behind a bearish reversal warning at its latest peak just under 2900. That would be an Evening Star that is coupled with negative RSI divergence, signaling fading upside momentum. This may precede a turn lower towards a range of support between 2789 and 2824 on the daily chart below.

S&P 500 Daily Chart

S&P 500 Drops Reversal Warning, Equities Brace. Yen to Extend Rise

Chart Created in TradingView

Wednesday’s Asia Pacific Trading Session

The downturn on Wall Street poses as a risk for Asia Pacific equities, particularly with rising concerns about another trade war front and slowing global growth. It wouldn’t be too surprising to see the Japanese Yen extend its advance while the pro-risk Australian Dollar takes a hit. The latter will also be looking to local consumer confidence which may surprise higher, extending AUD/NZD’s bullish reversal.

US Trading Session Economic Events

S&P 500 Drops Reversal Warning, Equities Brace. Yen to Extend Rise

Asia Pacific Trading Session Economic Events

S&P 500 Drops Reversal Warning, Equities Brace. Yen to Extend Rise

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.