USD Basket 1M
USD stabilized on Monday as price hovers around 0.915 support/resistance. While it is tempting to simply declare USD’s strength a wash after QE3 has been announced, traders need to note the safe haven characteristics of USD, which may allow USD to strengthen with uncertainty from Euro-Zone and China in the backdrop.
US trading session was kinder to Gold with prices rebounding from 30 Sep lows and pushing back up to trading range of 1,770 – 1,785, a range we are familiar early last week. If Gold continues to rally within the next 2-3 days but fail to push higher than last week’s High, the possibility of a sideways trend on a weekly scale should be considered.
S&P500 Futures H1
Futures traded mostly flat during US session after a continued sell-off during Monday’s Asian session. Prices are currently hitting Today’s H4 which is also a soft support/resistance level found on 5th Oct and early Monday morning. Failure to push higher will bring bears out again aiming to go lower to yesterday’s low of 1,450.
Dow Jones Industrial Futures H1
More bullish than S&P500 with prices during US hours briefly hit above Asian levels. Prices did fell back at the closing session but Bulls will be glad that we’re still sustaining above resistance around 3rd/4th October. Currently trading above ceiling found on 4th Oct and yesterday’s Asian Session, however a failure to sustain this push could result in price actions potentially forming an Adam-Adam double top (twin spikes).
US traders have stemmed the drop that was seen last Friday leading into Monday’s Asian session. We’re looking at prices rallying during early Asian session but currently prices are still trading within familiar ranges.
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