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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
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
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • #Copper extending gains to highest since 2014 in London -BBG
  • Hang Seng Index (HSI) has likely broken a key resistance level of 26,840, propelled by financial stocks: - HSBC (+5.28%) - Standard Chartered (+3.59%) - Ping An Insurance (+2.45%) https://t.co/XBv5In1NJ5
  • Japanese PM Suga says Japan doing everything it can to protect jobs - BBG
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/wMZn4SDCp8
  • Precious Metals Technical Analysis: #Gold and #Silver Rebound at Hand? - https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2020/11/25/Precious-Metals-Technical-Analysis-Gold-and-Silver-Rebound-at-Hand--.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GLD $SLVR https://t.co/wHwsO23TLu
  • Currency traders may eye US PCE inflation data today for clues about continuous rising price levels and how it may impact the Fed’s monetary decisions. Find out more on the DailyFX economic calendar. https://www.dailyfx.com/economic-calendar#today https://t.co/jlmSkHmhE0
  • Japanese PM Suga: - Employment impact from virus being watched closely - Will take continuous action on labor market if needed $USDJPY
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:https://t.co/urDN2b5Nwd https://t.co/BZg9Si833v
  • I am generally of the mind that the markets have run far beyond fundamentals and value, which doesn't mean it has to stop imminently. Another leg higher could come on behalf of a US stimulus boost which can supplement th... https://t.co/xu2uA2ylXU https://t.co/Ng8hdHjVJk
  • Japan's Nikkei 225 Index nearly 2% higher as Wednesday's trading session opens https://t.co/uoS9pGIvGa
Price & Time: Equity Markets on the Cusp?

Price & Time: Equity Markets on the Cusp?

2013-05-02 11:39:00
Kristian Kerr, Sr. Currency Strategist
Share:

This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.

Foreign Exchange Price & Time at a Glance:

EUR/USD:

PT_spx_cusp_body_Picture_4.png, Price & Time: Equity Markets on the Cusp?

Charts Created using Marketscope – Prepared by Kristian Kerr

-EUR/USD found strong resistance on Wednesday at the 4th square root progression of the year-to-date high in the 1.3240 area

-Failure to close over 1.3200 keeps our bias lower, but weakness under a convergence of several key Gann and Fibonacci levels in the 1.3050/85 area is required to spark a more important downside run

-Short-term cycles are unclear at the moment, but a minor turn looks due around the start of next week

-A broader time cycle turn window remains in effect through to May 12

-A close over 1.3200 is needed to turn us positive on the exchange rate

Strategy: A broader top seems to be building, but want to see confirmation before positioning aggressively on the short side.

AUD/USD:

PT_spx_cusp_body_Picture_3.png, Price & Time: Equity Markets on the Cusp?

Charts Created using Marketscope – Prepared by Kristian Kerr

-AUD/USD has come under steady downside pressure over the past couple of days and unwound the gains of the past week

-Our bias is still lower in the exchange rate with focus on the 1.0215 78.6% retracement of the March to April advance

-Traction below this level is needed to trigger a more aggressive decline towards 1.0155 and below

-Near-term focused time cycle analysis suggests a turn could be seen around the first half of next week

-The 2nd Gann square root progression from the year-to-date high near 1.0360 remains key resistance and only strength above this level shifts attention higher in the rate

Strategy: Like holding short positions whilst below 1.0360

EUR/JPY:

PT_spx_cusp_body_Picture_2.png, Price & Time: Equity Markets on the Cusp?

Charts Created using Marketscope – Prepared by Kristian Kerr

-EUR/JPY has traded in a narrow range above the 4th square root progression of the February low in the 127.50 area

-Our bias is lower while the cross remains below the 161.8% extension of the march to April decline in the 130.20 area

-The 127.50 Gann level remains a key pivot and weakness below this level ideally on a closing basis is needed to signal the start of a more important decline

-Near-term cyclical analysis indicates a minor turn window will be in effect early next week

-Traction over 130.20 will shift our bias immediately higher

Strategy: Jury is still out with respect to the importance of the cyclical tops recorded last month, but need to see weakness soon if a deeper correction is going to play out.

Focus Chart of the Day: S&P 500

PT_spx_cusp_body_Picture_1.png, Price & Time: Equity Markets on the Cusp?

Much of our attention today will be on the US equity markets. Wednesday’s decline was the first real sign that a top of some sort is actually trying to materialize in the indices following the important cyclical turn window we highlighted at the start of the week. In addition to the decline in price, we witnessed a divergence between S&P 500 futures and cash as the former was able to overcome Tuesday’s high while cash fell 2 cents shy. In our experience, such divergences are important around cyclical turn windows and often act as a leading indicator of a more important decline to come. If this is indeed a high of some importance in the S&P 500 then Tuesday’s cash high of 1597.57 should continue hold. Continuation weakness under Monday’s low would be further immediate evidence of a turn while strength over 1597.57 would undermine the negative cyclical prospects.

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter @KKerrFX

Are you looking for other ways to pinpoint support and resistance levels? Take our free tutorial on using Fibonacci retracements.

Need guidance managing risk on trades? Download the free Risk Management Indicator.

To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.

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

DISCLOSURES