Talking Points:
- A heavy slate of data awaits markets, with tomorrow’s FOMC meeting looming large over USD, S&P and even Oil trends. February 11th was a critical day in markets, as this was day 2 of Chair Yellen’s Congressional testimony, and this is what helped set that bottom in stocks and Oil prices. At the time, Ms. Yellen took a very dovish stance towards rate path out of the United States. The big question is whether she and the Fed can do that again after the S&P has ripped higher by 15.5% in 2.5 months. And if the Fed does talk up the possibility of a June hike, will these trends come undone?
- One of the more interesting technical setups is currently in Oil, as we had covered in this morning’s Market Talk (if you want to be notified as Market Talk is published each morning, please click here to join my distribution list). Oil currently has well-defined support and resistance from two different Fibonacci retracements that we discuss in today’s webinar. There may actually be a reversal play in the not-too-distant future.
- The bigger question mark comes out of the Bank of Japan, set to announce their most recent decision on Thursday morning. Nobody is quite sure what they might even be deciding on at this point after the January move to negative rates didn’t work out so well. A rumor was circulating on Friday that the BoJ may be investigating Negative Rate Bank Loans, and given technical formations on Yen pairs as well as the Nikkei, traders need to be cautious of continued reversals (further Yen weakness, Nikkei strength).
- Gold is also in the midst of a fairly interesting technical formation, as we’ve seen a range develop after the February breakout (Gold also produced a spike on the morning of February 11th). The chart below goes over the current technical setup in Gold, with a support zone from $1,200.41-$1,217.26, again being defined by two different Fibonacci retracements.
Created with Marketscope/Trading Station II; prepared by James Stanley
--- Written by James Stanley, Analyst for DailyFX.com
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