Stocks recovered to close higher Wednesday and the US$ closed higher on the back of the upbeat private ADP jobs report and news out of Washington re debt-ceiling negotiations. Despite this, most charts reflect price action that looks to be in a process of digestion / consolidation ahead of the next major move. The two big question remains though: 1: Which way will markets move, up or down, and 2: what will trigger this move? Will it be this Friday’s NFP? All one can do is to manage risk and monitor for momentum-based trend line breakouts; on whatever time frame you trade.
Data: not a huge lot on today:
DXY weekly: above the weekly 200 EMA now so watch the 95 region for any new make or break:
Markets:
S&P500 4hr: chopping sideways, albeit with wide swings, on low momentum. Ryan Detrick reminds us that this volatility is entirely normal though.
ASX-200 4hr: ditto. Note the hold above 7,200 though!
Gold 4hr: watch for any new TL b/o:
EUR/USD 4hr: lower but watch 1.15 and for any TL b/o:
AUD/USD 4hr: watch for any TL b/o:
AUD/JPY 4hr: watch for any TL b/o:
GBP/USD 4hr: watch for any TL b/o:
NZD/USD 4hr: lower after the RBNZ rate raise but watch 0.69 and for any TL b/o:
USD/JPY 4hr: watch for any TL b/o:
GBP/JPY 4hr: watch 151 and for any TL b/o:
