And last night was clearly a shipwreck....
EURUSD: At the moment this move to new lows and subsequent bounce gives you a daily candle that looks like a hammer (potentially bullish) and the possibility of quadruple momentum divergence at the new low (was triple at the low on 13 Jan. This actually suggests that if sustained on the day we could actually bounce further- maybe even back to 1.04+
EURUSD: At the moment this move to new lows and subsequent bounce gives you a daily candle that looks like a hammer (potentially bullish) and the possibility of quadruple momentum divergence at the new low (was triple at the low on 13 Jan. This actually suggests that if sustained on the day we could actually bounce further- maybe even back to 1.04+
USDCAD and USDMXN both broke good levels but are hovering close to those breaks.
On USDCAD the levels are much bigger as they are the highs posted in 2016 and 2020 (1.4690 and 1.4668 respectively). A real break would be a weekly close which ,if seen, would suggest that a move above 1.50 at a minimum would be likely
On USDMXN the break is more short-term and a daily close above the 20.94-20.98 area would suggest as high as 21.85 is possible (inverted head and shoulders)
JPY crosses will likely remain heavy if both yields and Equities stay under pressure. Initial support gave way at 159.73 but the big support range (with possible head and shoulders top) is 157.08 to 155.32
Yields are mixed with short-term yields a little higher and long term yields lower. I am still watching 4.31% on the US 5-year yield and 4.49-4.50% on the US 10-year yield as pivotal levels. Breaks below there would open up for lower yields (4% on 5's and 4.25% on 10's) as well as likely flatter curves.
Gold dipped as risk got hit but has recovered its losses and more this morning. While we sustain above the old all-time high at $2,790 I am still targeting a move above $2,900
WTI has bounced back above the $72.88 pivot on last nights developments but has so far held good resistance around $75.21-$75.29. IF that holds I am still biased that Oil can head lower again
Es1 traded below the 5,948 support but has since bounced. IF we see a close below 5,948 then a move towards 5,800-5,810 would be a danger
