After a long time, market is finally showing some clarity here. The risk trade is on, but to be completely confirmed, we want to see a daily close above 1298 resistance region on the S&P500.
This would then confirm a new stage for a coming strength on stocks, which will also support some major currencies against the US dollar.
Guest post by Gregor Horvat
We see some very strong moves on Australian dollar, a currency that may easily become one of the strongest in coming days.
Aud/Usd, as we can see on the chart below, has reversed significantly this week from around 1.0389 region as stocks found the support. Well, looking at the substructure from 1.1 highs, move is very slow, extremely choppy and formed a lot of overlaps.
This is clearly a personality of correction! In fact, price is currently rising in impulsive fashion from the bottom, and if we get a daily close above the falling trend line, maybe somewhere above 1.06 then this will be a confirmation for further strength of Australian dollar against the US dollar.
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