Coin Flick And Sideways Markets

Forex Trader Note: Australian employment data came through on the bullish side of things, and sent Aud/Usd up to test the R2 swing point levels on the pair. The 0.9375 area will need to see a 4 hour chart close above it before long trades can now be easily considered. The long moves in aussie sent the dollar lower against the major pairs, as per the normal reaction to Australian releases in the thin Asian pre-market, with the question being, can this start a move that holds?

The chances are slim, because the pattern this week has been of a sideways grind, and unless equity markets can break long and hold, the lack of momentum may stay this way. These are ugly looking charts right now, with very little momentum or direction. Take a look below; mixed trends and momentum. This is a coin flick at the moment.

Lots and targets: Anything taken ahead of the closed 4 Hour candle price points shown below will require reduced lots and reduced targets.

Red Flag Economics:
05:00 EST Eur Ind. Production Exp 0.6%, Prev 0.9%
08:30 EST Usd Unemplymnt Exp 512K, Prev 512K
11:00 EST Usd Crude Oil Inventories Prev -4.0M

Dollar Index: The 75.80 area now becomes the pivotal price point for the dollar index. A four hour close above/below there signals which way the market is willing to test the value of the Usd. Swing Point: 75.90

S&P Futures: The 1082 and then 1100 areas on the S&P are the near-term price action points, that may form a price channel if global markets fail to find equity buyers. The 1055 support area looks solid. Swing Point: 1080

Crude Oil: 80.20 and 81.05 are the topside numbers on crude oil trade, with 81.75 above that. There is a lot of noise at the 78.50 area, with 77.50 and 76.50 under there. Swing Point: 78.90

Gold Bullion: 1075 on gold trade will be near-term support, backing any long tests of 1120. The short side is also backed by 1065. As the market trades long gold as a hedge, it seems that the gold bugs will dominate. Swing Point: 1105

Disclosure: No positions