Charting the Markets: Euro Spits in the Face of Strong NFPs
Price and pattern trumps ‘news’. EUR/USD continues to act well at long term support. Case in point, US NFPs were ‘good’ and EUR/USD has gone straight up (USD down) since the release. If you think you are going to assign a good/bad outcome to ‘trading news’ (which never made much sense to me because price is what’s actually traded anyway) then you’re in for a rude awakening.
CABLE continues to churn at long term downward sloping support. The supporting parallels are a bit lower but could provide what’s needed to inspire a meaningful reversal higher.
AUSSIE and KIWI remain pressured. AUD/USD is down for its second week from long term resistance but watch for constructive action at specific levels given the broad behavior change in COPPER. The jury is still out on the importance of the NZD/USD rally from 2015. Is it the beginning of a major trend change or just a blip on the way to .60 or below? At this point, I don’t know.
LOONIE continues to respect long term channel lines. Resistance is still higher but watch the CRUDE trendline near 47.50 for clues.
GOLD has dropped for 8 days (Friday would be 9 if it closes down), which has happened 5 times since 2001. Every instance was near at least a short term market low. Clean parallels in SILVER should offer guidance on the PMs.
EURO crosses are on fire with EURGBP breaking through trendline resistance, EURAUD breaking through its median line, and EURNZD eating bear meat after completing 3 waves down from the August 2015 (China) high.
Have a great weekend!