GBPUSD tested a key resistance level at 1.6747 last week but failed to break it, forming a bearish shooting star pattern in the process, says Andy Dodd at Louis Capital Markets. A break below 1.6618 could the pave the way to 1.6389.
The South African rand is oversold against the major currencies and due for a major correction throughout 2014, according to Chris Williams at Newedge.
Short-term changes in STIR strips are gaining interest across the sterling, dollar and euro futures. Finex present their technical and Market Profile based assessment of near-term moves.
Only a qualified break above 1850 will confirm that a downward correction for the S&P is complete, say BNP Paribas. If this break occurs, the index should then target 1950, although this level is itself a significant resistance point.
Market breadth measures, such as the NYSE Advanced/Decline Line, will be crucial in determining the ultimate direction of US stocks in the coming weeks should the index approach new highs, says Chris Senyek of Wolfe Research.
Weakness in Amazon stock is creating an opportunity to buy medium term strength, according to Ari Wald of Wolfe Research. Deeply oversold momentum also supports a near-term basing attempt.
USD/JPY has peaked in the medium-term according to Nikolas Baptiste of the Technical Analysis Group (TAG). The recent decline to the current level they describe as the ‘doorway to the downside’ at 100.75 with the more recent bounce merely a short-term correction.
The S&P500 is set to meet resistance at 1850 after January’s decline and rebound, suggesting that a further correction can be expected, says BNP Paribas in its weekly technical report. Also included is coverage of bonds, FX and commodities.
A break above 3.97% appears to be on the cards for the 30Yr Treasury, according to Cyril Berkouk of Trading Central, as technical factors compound to suggests a possible target of 4.67%
Julius Baer remains bullish on equities despite the January Effect suggesting otherwise, says Christoph Riniker, head of equity strategy at the bank.
