 Yen and Swiss Franc rise broadly today as global stock markets look set for a pull back after recent strong run. Major European indices are trading generally in red while US futures point to a lower open. On the other hand, commodity currencies are trading broadly lower, as led by Australian Dollar. Sterling, Euro and Dollar are mixed, somewhat caught in between. Technically, though, it's still too early to even call a top in US stocks, not to mention a major pull back or a reversal. 3090.41 support in S&P 500 and 9560.41 support in NASDAQ need to be violated first before confirming short term topping. Gold, on the other hand, is near to a near term resistance level at 1721.90. Break will indicate completion of the correction from 1765.25, which is a sign of return of risk aversion. In the currency markets, we'd maintained that 0.6856 minor support in AUD/USD and 1.3572 minor resistance in USD/CAD should be taken out if commodity currencies are ready to pull back. 74.40 support in AUD/JPY should be broken before confirming short term topping too. EUR/CHF will also need to break 1.0744 minor support to violate near term bullishness. For now, we'll have to wait and see. |
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