Dollar Weakness Equals Strength In Equities

[mercaforex]

By Mercaforex

SPX/USD:
The equity market is playing the range. If we manage to break above 1018, it should be relatively clear sailing to 1044. On the downside we are looking at a move down to 992.4 and support around 970, and 956.23. This a great range to trade. Any move past initial support and resistance will probably be at least a 10-15 point attempt, so be poised to strike!

GBP/USD:
We continue to play the range. Now that we are back in the channel, expect to see some indecision as traders battle it out trying to find a direction. Yesterday’s candle is not terribly bullish. Sellers came in and kept the buyers at bay. Resistance 1.6744 support, 1.6311

USD/JPY:
The buying did not come into this currency pair like I had hoped. We saw a further attempt to push lower. I expect some more selling today and an attempt to take us near support of 94.445. True resistance won’t be seen until 97.785. At the moment this market is acting relatively weak and it seems likely that it will end the day near or past yesterday’s lows, prior to the upcoming weekend.

XAU/USD:
Seems like Gold is going to try and sustain this nice up move. A push up followed by some retracement, another push up, followed by retracement etc. etc. The key here is that we have not made lower lows, and with each shift upwards, we make new highs (in this particular move). Initial resistance 959.10, followed by 971.89. Support 940.32