Weekly Analysis : Chance of the Bull?
The movement of stock market last week was dominated by bullish movement. There are some optimism on the market because of good economic data and positive testimony by Bernanke. After corrected sharply to levels 1040, S&P 500 index bounced and continue to rebound toward 1091.60 level. The second support level I mentioned last week, apparently strong enough to prop up the index from falling further. For now, what deserves attention is the resistance level at 1105 as shown below:
If 1105 resistance level could be broken, the bull have a chance to fight back. For a while in mid-term the trend still tend on bearish mode, but if the index could continue to rise, it is not impossible that we return to uptrend sentiment.
Meanwhile, EUR/USD continues to rebound after broken 1.2000 level for a while. Judging from the trend in long term, the EUR/USD still on bearish mode.
In the Daily Chart we can see together that we’re still in downtrend mode.
What to pay attention for now is the resistance level from upper line of the Darvas Box. While the fundamental trend of the EUR / USD still in bearish mode, that resistance level @1.2325 is the crucial point of EUR / USD. What investors concern for now is European crisis problem. Meanwhile, based on COT report for currency, big-players still dominate for long posision on USD. Of course, this is not a good news for the euro. So I think the EUR / USD still tend to decline, although there are a great chance it will continue to rise these days.
Here are the EUR/USD H1 Chart
Some headline news worth to read :
Japan at risk of Greek tragedy
Korea Unveils Steps To Ease Impact Of Rapid Capital Flows
ECB governor says rates to stay on hold
China data boosts world stocks euro climbs
Fed Chief Cautiously Optimistic about Economy
What I Do in This Market : I still play calendar spread position on option. Meanwhile for this week, i play scalping on forex. I play long and short position based on signal. It’s quite risky hold long position too long for right now, even the eur/usd keep climbing….
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