The SPX closed at the key uptrend line of the ascending wedge, and based on the bearish engulfing candle on the daily chart, it looks like a move lower from here is in the cards near term.
The EURJPY has bounced back to the breakdown point near the 125.00 level which is a do or die level for the bulls.
The SPX500 closed the week above the downtrend line and the 61.8% Fibonacci retracement level which was a bullish sign headed into the weekend.
The US equity markets are trading heavy after a strong selloff, is there more selling to come?
As the equity markets continue to extend their gains into the fall season, we continue to look at what the implications will be on currencies, and what potential outcomes we may have in the current environment.
Global equities had been on a 9-year rally since 2009, with the bottom being at the peak of the 2008 Global Financial crisis. This rally has been so strong that many global indices have gone up in a straight line, registering gains up to 300% over that time period with volatility hitting historical lows.
The S&P 500 and global stock markets may have found a near term peak, but how does that matter when trading the Forex market? Or more specifically, the US Dollar?