Quiet data week this week but with visits in Europe we could hear more about Spain and Greece (Merkel's off to Greece on Tuesday). Expect a strong technicals week with rumours, market talk and comments from influential people providing the catalyst.
Two things to watch out for are rumours on a Spanish bailout and Troika opinions on Greece; once Greece have their money and Spain have a bailout the Euro and risk in general is likely to surge, until that point chances are risk is likely to remain choppy or pushed lower. Draghi also speaks on Tuesday, not doubt we will hear similar to before as he subtly encourages nations to ask for bailouts.
In other news:
- Cameron looks like he is dying to say "no" again to a European budget,
- Might see further sell off in the pound as people look to the potential for further easing in the future
- US elections and the fiscal cliff will become more pronounced in the news
- Given all the recent QE, the growing concern is how the majority of this actually gets unwound from the system and what the impacts of this may be
EUR/USD
The Euro pushed higher on Friday but remained relatively flat. Wouldn't be surprised to see a retracement lower again from here. Look for price rejections of the 1.29 mark, which could offer further opportunities to enter long.
GBP/USD
The Pound finally pushed lower after a relatively static day on Friday, we now sit at the rising support line, and a push lower here will retest the recent lows, a break of these could see us move lower towards the 1.5920 mark.
AUD/USD
The Aussie is currently sat at a support level; rejection of lower prices off of this level would put us long; however we wait for good entry signals (long or short); if the pair breaks lower expect a test of parity.
USD/JPY
USD/JPY tested channel resistance on nonfarm payrolls. A break and hold above 78.80 would likely test the 200 day moving average at 79.20; a break above this would test highs. This pair is relatively choppy at the moment; I would look for good entry signals in the 77.00's and potentially again above the 200 day moving average; can also look for small short entries on rejections of the 200 day moving average to test channel low.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.