Tuesday, 31 May 2011

EUR/USD tests resistance

Hourly candlestick chart shows the EUR/USD testing resistance around 1.4424. The market has yet to retrace even 50% of the decline from early May.  If the larger trend has turned down, a retracement of between 38.2% and 61.8% would be considered normal

AUD/USD turns down at resistance

The hourly candlestick chart shows that the market has declined below yesterday's low, after failing to sustain a move through  resistance around 1.0714. The trend is not yet down at this timeframe, there has been no bearish cross of the 18 below the 40 period moving average, but  we can look for a down trend to develop so long as the market stays below the 1.0714 zone. 

S&P 500 climbs

Daily candlestick chart shows the S&P 500 / SPX has today risen above the trend line formed from the early May high. If in New York trade the cash index follows today's Asian and early European lead, the S&P 500 will likely head for a test of the May high in coming weeks.