By: Bastian Rubben
The US stock markets closed on mixed territory yesterday on the background of disappointing ADP Non-Farm employment change data, which might indicate that the official data tomorrow will disappoint as well, but we will have to wait and see. The S&P 500 is getting strong support around 1395 points and it will remain bullish as long as it stays above this support.
The investors are waiting for the NFP data tomorrow, but before that, they will concentrate on the ECB press conference today, in which the European interest rate expected to remain unchanged (1.0%). Earlier this week, I mentioned that the Euro was moving in uptrend channel against the USD and estimated that it would continue moving through this channel until something significant occurs in the markets. The Euro made a bearish candlestick yesterday, which might indicate for a continuation of the declines, as stochastic high levels support this estimation. In case of a break-down, the Euro might falls to 1.30, but a positive reaction to the ECB press conference might lift the Euro to 1.33
The Euro is weakening against the Canadian dollar as well and the pair EUR/CAD created the descending triangle pattern above the support at 1.295, as a break-down of the support might pull the pair to the annual bottom at 1.287. However, such accurate supports tend to be a trap and cause false-break, so you have to watch out from a sudden strengthening by the Euro.
