Welcome to this week’s Market Blast Technicals where we will look at the S&P 500 (US500), the VIX, EURJPY, AUDJPY, USDCHF, AUDUSD, and EURUSD.
Yesterday was saw USD weakness and the drop continues with all major pairs except the NZD.
EURUSD is still trying to break resistance at $1.190 with a few attempts this month.
If we get a reversal, the next key level below is $1.17.
AUDUSD is showing us the same situation with price action trying to break resistance of around $0.724.
USDCHF, on the other hand, has been trying to break support at 0.905 and it might just do that today.
Keep an eye on AUDJPY with this ascending triangle heading for resistance at 76.7 Yen and we see price action touching this lower trend line.
We will look for a return to resistance or a break below to the next key level.
EURJPY is simply a story of a bullish trend channel and we see price action about to touch the lower trend line, so watch for a bounce or a break here as well.
Don’t forget about Valutrades’ new addition — the VIX — which gives us short opportunities whenever we have volatility in the S&P 500 stock index.
Volatility is lower, after the heights of the COVID panic, and has been trending lower during the summer.
The level broke support at 22 and has returned here as resistance.
As we can see, the stochastic oscillator is a good tool to indicate when the spikes in volatility might be calming.
Speaking of the S&P500, we are again approaching the all-time high that we saw pre-COVID.
That’s all for now. Happy trading with Valutrades and we will see you next week.
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Disclaimer:
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.
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