Lower Stock Market Pushing USD Higher Against The Majors

Lower Stock Market Pushing USD Higher Against The MajorsThe European stock market is sharply lower today, following yesterday's sell-off on U. S. equities after Ben Bernanke's statement yesterday that if the economy continues to improve, it could start to wind down its $85 billion a month asset-purchasing program towards the end of 2013, and end it in 2014.

Metals are moving sharply lower, with gold testing now at psychological level at $1300 and silver $20. We could see some technical bounce from here especially if we observe the Elliott Wave pattern, which suggests that price is at the end of wave iii), now testing 261.8% Fibonacci support. Many of our clients have been shorting gold since June 10. I suggest you close some % and make very tight stops.

E-mini S&P500 has also been looking weak since yesterday; we can count now five waves down from latest high. This is an impulse that confirms the change in trend, from bullish to bearish.

The EUR/USD also extended its decline in the last hour or so, which means that the correlation between EUR/USD and stocks are normal for now. The USD is safe-haven in risk-off mode, so normally traders will be interested in Long USD opportunities.

Forex Analysis by Gregor Horvat at ForexPros. com


Technical View on Stocks
Anil ManghnaniRajat BoseVijay BhambwaniAmbareesh BaligaPrakash GabaSudarshan SukhaniAshwani GujralAshu Madan

Recent Images


Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate