By: Bastian Rubben
The US stock markets opened the trading week on mixed territory as the industry index, Dow Jones, closed on the red zone and the other two main indices closed on the green territory. It seemed on the first hours of the day that we were about to see a continuation to the sharp declines from Friday, but the futures managed to correct up before the opening bell and closed around Friday's closing level. S&P 500 opened the day on the support of the channel that I analyzed yesterday, and as I mentioned, we might see it stamping between 1360-1400 points for a while.
The panic in the markets during yesterday morning, in which the European & Asian markets fell sharply, caused large gaps in most of the pairs of currencies, as the USD gained the benefit from these gaps. However, the futures corrected up and weakened the USD, and this caused false-breaks patter in most of major pairs' daily charts. Therefore, it is hard to analyze currencies at the moment, and it will take another day or two before we can point out on specific direction.
One of the currencies that opened the day with large gap was the Australian dollar, which started the trading session exactly on the support at 1.01. This level was the target I set in case the Aussie would fall (11.4.2012), as additional break-down here might take the Aussie down to 0.99, although the support looks strong and the currency might correct up to 1.03.
