It's been a somewhat weak day for economic data as of late, but don't be deterred at all. With the upcoming Asia session there are still a few gems to find especially when it comes to Australia data due out.
Firstly just touching on recent movers and gold as expected saw a rebound on the charts after yesterdays horrific fall. Now many were looking for very large moves today, but for the most part we saw a rather weak move in comparison to yesterday. When compared to previous moves after the last week it was quite substantial though, but resistance has been found at 1100 at present. I would expect to see further pressure on this level at least to 1130 on the charts, and the possible reality of more very long wicks while the market tries to find some ground.
The S&P 500 saw a strong sell-off today as the market switched to bear mode after failing to find further support on the charts to crack resistance, and for the most part that is fairly logical. When looking for higher highs on a record level the S&P 500 generally looks for fundamental events to play off, so in this case my focus would be existing home sales and unemployment claims. These events could be great for trigger orders looking to catch the wave higher as the bulls have looked to unwind current positions and profit take at present.
Crude oil as well is looking very interesting. Yesterday I mentioned that Iran had apparently stockpiled 50 million barrels of oil in preparation of sanctions lifting. Such a large influx has the market slightly spooked at present; which when coupled with the USD showing signs of strength has led to many of the bulls exiting the market. When looking for support I expect we will find strong signs around 49.31, but it's likely it will fail if we find any sort of pressure as the bearish run from the start of the year is still fresh in many traders heads.
Yen traders came back into the mix today as they pushed the USDJPY lower on the charts, but not before Kuroda spoke up and said that further easing was on the cards to help Japan reach it's CPI targets for 2015/16. Either way the outlook is good, so the reality of further easing seems slim. Markets were quick to remind pushing the USDJPY down towards support on the charts to 123.618 before pulling back upwards on the charts. I would certainly be surprised to see further falls on the charts after all the unwinding we have seen, any falls should be treated as a technical play on the charts rather than a hedge against risky events (Greece and Russia).
Finally the Australian dollar is the one to watch today with CPI data due out shortly, and the Reserve Bank of Australia hoping to see further pushes lower, it will be interesting to see how the market reacts. Current support can easily be found at 0.7367 and it's likely that this will be a very hard floor to crack in the short term as it has so far sustained a fair deal of pressure. Either way the big mover shortly will be the Aussie dollar, so pay attention, because if you blink you may miss it.
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