The EUR USD continued its sell-off on Thursday after turning the main trend down on the daily chart earlier in the week.
Downside momentum indicates that the break is likely to continue down into an uptrending Gann angle from the 1.2644 bottom at 1.3544 on Friday.
Based on the main range of 1.2587 to 1.4282, the retracement zone at 1.3510 to 1.3434 is also a potential downside target.
Downside pressure continued to mount on the December E-mini S&P 500 overnight as traders continued to shed risky assets amid speculation of debt woes in the Euro Zone. Without major economic releases to follow and a Treasury Bond market to lean on because of the U.S. Veteran’s Day holiday, thin market conditions and low volume could lead to volatility.
Weakening Dollar Sets up British Pound for 1.6017 Test
Euro Reverses Course; In Position to Test Major 50% Level at 1.3510
A German business climate survey came in above expectations reversing the Euro and sending it higher. The strong rally in the Euro brought it closer to a major 50% retracement upside target at 1.3510. The overnight move also erased Thursday’s negative tone which was triggered by a bad PMI number.
December Treasury Bonds broke on Friday as investors shed safer assets in favor of higher-yielding risky assets. The main trend remained up on the daily chart while the market completed a 50% retracement of the 124’22 to 135’19 range. The first target was 130’17. The market tested 130’12.
S&P finishes Near Low; Could Test 1050.50 Early Next Week
The September E-mini S&P 500 finished the week near its low, but slightly above a key 50% price level at 1065.25. The weekly chart indicates the market still has more room to the downside with 1050.50 the next likely target. A test of this level could attract strong buying power.
S&P 500 Finishes Lower; Chart Indicates Test of 1065.25 Likely
The September E-mini S&P finished lower on Thursday. Although the low of the session was reached near the opening, buyers failed to produce enough interest to drive this market higher into the close. With the fundamental news still supporting a down slide, today’s early rally was most likely triggered by oversold short-term conditions.