SPXUSD – U.S STOCK INDEX S&P 500 CONSOLIDATE ABOVE KEY SUPPORT AS UPTREND REMAINS INTACT
The U.S stock index S&P 500 plummeted below 2458.24 key support level on last week Tuesday but failed to close below this level. This was followed by three days consolidation of prices above 2458.24 key support. Meanwhile, lower prices were clearly rejected at the 2458.24 support area. This week, we shall stand aside and wait for a break at 2469.22 – the high of the mother bar that formed on Wednesday, September 6th to go long as a way of being more conservative.
Nevertheless, more aggressive traders may look to go long on a ‘blind’ entry as long as price remains above 2458.24 key support level.
USD/JPY – DOLLAR/YEN PLUNGES BELOW KEY SUPPORT
During trading session last week we saw the dollar/yen plunge below 108.259 key support level and closed lower. This has been a level the pair has not traded below since November 2016. We can therefore expect to see further decline in prices for the dollar/yen in the days and weeks ahead as 108.259 acts as near term resistance.
Traders may look out for price action sell signal around 108.259 upon retracement to mean price this week. A daily close above 109.224 resistance will nullify bearish sentiments on this pair for this week.
GBP/USD – POUND/DOLLAR GOES BUOYANT
We saw the pound/dollar make a strong reversal after testing 1.2798 key support and has been trading higher ever since in the past days and weeks. The pair surged above 1.3129 key resistance last week and closed higher. This level will now serve as a near term support area for buying opportunities. Traders may therefore look out for price retracement near this level for buying opportunities on the pound/dollar this week on either the 4 hour or daily chart time frames.
A daily close below 1.3023 will nullify bullish sentiments on the pound/dollar this week.
Author: E.O. ESSIEN
(FOREX MARKET TECHNICAL ANALYST)
Email: elijahotoo.eo@gmail.com (0240080104)
DISCLAIMER: THIS ANALYSIS IS PURBLISHED STRICTLY FOR INFORMATION PURPOSE ONLY AND DOES NOT SERVE AS AN OFFER FOR THE PURCHASE OR SALE OF ANY FINANCIAL SECURITY.
