Euro resistance at 1.2660/70 held. Loonie support at 1.0200/13 held. Ozzie failed 2nd time to get above 1.00 (200MA also was at this level) while Cable was the weakest not even managing to get back to 1.5600.
Yesterday I wrote that Ozzie will find it hard to get above 1.00 while I expected Loonie to fall to 1.0150 with 1.0215 being my first profit target. End result, pips earned are half as what they should have been but still not a bad result for being away from markets today.
I think equities are trying to put a bottom (top in USD) but it appears we are due for a downswing within this bottoming process after an impressive rally (at least in American equities). In one week S&P500 went from 1263 to 1349, a gain of 6.8%. Based on netdania charts (http://www.dailyfx.com/charts/forexpowerchart/) S&P, Dow30 and Nasdaq 100 futures hit their declining 50MA and previous swing lows as well this morning. 4h charts show that those three closed below their previous swing lows although S&P and Dow30 are still above their declining trendlines. Therefore, focusing on the short side tomorrow looks reasonable. S&P short around 1301 to target 1290. European indices to trade are FTSE100 and DAX30 - the weaklings. FTSE100 sell stop at 5380 with initial target at 5345. Dax is a sell at 6051. Initial target is 6000.
FX levels to watch are
USDJPY sell stop at 79.09. First target 78.75
EURUSD sell stop at 1.2430 targeting 1.2350 and below
As per previous post, long USDCAD at 1.0356 and short AUDUSD at 0.9817
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