Euro Rallies from 4-Year Low; Reversal Bottom Possible
Euro Posts Closing Price Reversal Bottom; Appears Ready to Turn Trend
The EUR USD posted a closing price reversal bottom after positive comments from Greek officials encouraged weak shorts to lighten up their positions. After touching a new low for the year overnight, the EUR USD turned around as the lack of fresh selling pressure scared some of the weaker shorts out of the market.
The U.S. Dollar rallied overnight following yesterday’s closing price reversal bottom. The first objective was met at 77.77. Upside momentum took the market to the upper end of the retracement range at 77.93. The Dollar may run into some resistance in this area, but a lot will be determined by today’s ADP jobs report and ISM Service report.
Dollar Set Up for Short-Term Rally Following Reversal Bottom
The U.S. Dollar was able to mount a comeback after early session weakness. A lower than expected U.S. pending home sales report helped raise fears the Fed would once again leave interest rates at historically low levels and fueled increased demand for the Dollar as a safe-haven investment. Oversold conditions also contributed to today’s rally.
Investors continued to dump higher risk assets today triggering weekly closing price reversal tops in the December E-mini S&P 500 and the December E-mini NASDAQ. A follow-through break to the downside in both of these markets next week will confirm the reversal top and lead to the start of a 2 to 3 week break.
U.S. equity markets posted weekly closing reversal tops indicating the possibility of the start of a 2 to 3 week break. A worse than expected U.S. Durable Goods Report triggered today’s sell-off, but the high for the week was posted shortly after the Fed FOMC announcement on September 23rd. Investors are selling stocks on the belief that prices are too far ahead of economic conditions.
The U.S. Dollar posted a strong gain today and is now in a position to close higher for the week. A weekly closing price reversal could indicate the start of a 3 to 4 week rally. Investors are not too happy with the projected pace of the global economic recovery. Many cite yesterday’s action by the Fed as a sign that the recovery will be slow and labored.
Bullish Intraday Reversal For Second Day In-A-Row Has Stock Indexes Closing Near The HOD
I am not sure how strong and long this commentary is going to be as I have been surfing some giant waves and have been spending the past two days at the beach most of the day watching the surfing contest at Ho’okipa amongst the HS ripping groms. These kids paddle out into 10 foot face POWERFUL HEAVY waves and charge like it is nobody’s business.