Well US equities and bonds markets are happy enough. Dow posting 98.92 to close at 18057.65. Any respite from the USD appreciation sends equities in USA and all round the world into glee. Yes USD had bounced back against 10 major currencies this week, but in the short term there's a real nagging doubt in traders minds. We already have seen 2 major red flags on the US economy and fresh longs are reluctant even with counter part weakness considered but still the EUR slips for 5 sessions in a row this week no matter what the fears in US markets the facts of bond differentials keep stacking up
Read on Reuters - http://www.reuters.com/article/2015/04/10/markets-forex-idUSL2N0X711U20150410
The USD keeps creeping up even if reluctant because the US bond markets justify higher demand for USD. Its basic math. US bonds pay more interest and foreigners need to buy USD to invest in higher yields. Higher USD maybe be nerve wracking for US equities but all round the globe equities are in delight as their export values in USD terms grow. See on Reuters the effects of the USD weighing in on Euro land equities as markets soar to levels not seen since the year 2000, that's 15 year highs -
http://www.reuters.com/article/2015/04/10/markets-stocks-europe-idUSL5N0X73HO20150410
Crude oil and gold have hit the brakes again and trade sideways as the USD recovers all week long. fresh concerns for bullion slippage back to the 1100 maybe on the cards and crude oil back fdown to 45 if an Iran deal is reached soon.
Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.
USDX
99.350 +0.378 +0.49%
Support 98.665 Resistance 100.435
EUR
1.060200 -0.007765 -0.73%
Support 1.05123 Resistance 1.07423
Crude Oil
51.79 +1.00 +1.97%
Support 49.37 Resistance 53.07
Gold
1208.000 +13.100 +1.10%
Support 1,185.0 Resistance 1,220.4
Pieter Bergli - DeLoren Trust Holdings
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