The following are the intraday outlooks for USD Index, EUR/USD, EUR/JPY, and SP500 as provided by the technical strategy team at SEB Group
DOLLAR INDEX: At the next key hurdle. The index has now arrived at the last obstacle, the falling top line from the 1985 Plaza accord top before confirming the long term bull trend. Short term we see some further advance this morning but at least a minor setback should then be seen ahead of the weekend.
EUR/USD: Exited the bear flag. So Mr. Market did actually follow the textbook and pushed prices sharply lower, printing a fresh 12 year low. As often after benchmark candles such as yesterday’s the market traces out a fresh low during the first half of the day only to thereafter correct higher into the range of the benchmark candle, so kind of a kneejerk reaction sought for today. Looking forward 1.1210 will be the next point of attraction as representing the 61.8% correction point of the entire bottom to top, 0.8224 – 1.6040, move.
EUR/JPY: Breaking the key support. As earlier elaborated a sustained break of the 134.15 key support will have profound ramifications risking sending the pair deep down into the 120’s. Rejections from the support, or from just beneath, will probably run into offers already around 135.00.
S&P500:Upping pressure on 2,062 resistance. Another solidly (ECB infused) bullish candle was added yesterday. Demand is obvious and the 2,062 resistance could be taken out – if so, look for 2,089 next. Yesterday's mid-body point at 2,041 should be supportive. Current intraday stretches are located at 2,022 & 2,063.
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