US Dollar index bullish reversal from support zone
In general, week from 30th of June to 4th of July was positive for global markets. Indexes gained 1-2% mainly on better then expected job numbers from US. Dow Jones above 17000 with technology index Nasdaq at 14 years highs , after the government reported the economy created 288,000 jobs in June and the unemployment rate fell to 1,6%. A stock or index hitting new high has no overhead supply to contend with. When a stock or index reaches a new high supported by big volume clues, it has been propelled upward by institutions taking positions because they believe that fundamentals are solid and the prospects for the future are even better.
The European union kept monetary policy unchanged as expected following last month's measures to stimulate the economy. CAC 40 bounced off 4407 where 21 EMA is situated. It could be our new point of reference. Week before sellers managed to broke down accelerated trend, if they still want to keep control on price they should defend break down point 4500. After big run in 2013-14 years it may take a pause and pull back a bit deeper to 50 EMA and macro trend line close to 4300.
The US dollar gained against major currencies. The job report is bullish for the U.S. dollar, and a headwind for gold. Dollar Index bounced off support zone that is in tact since April 2014. Now we have green, reversal candle that can lead to something bigger if next week buyers will lift prices above previous high of that candle. US Dollar still under pressure below key moving averages. I will use my levels of support/resistance and pivot points to measure price action.
The European union kept monetary policy unchanged as expected following last month's measures to stimulate the economy. CAC 40 bounced off 4407 where 21 EMA is situated. It could be our new point of reference. Week before sellers managed to broke down accelerated trend, if they still want to keep control on price they should defend break down point 4500. After big run in 2013-14 years it may take a pause and pull back a bit deeper to 50 EMA and macro trend line close to 4300.
The US dollar gained against major currencies. The job report is bullish for the U.S. dollar, and a headwind for gold. Dollar Index bounced off support zone that is in tact since April 2014. Now we have green, reversal candle that can lead to something bigger if next week buyers will lift prices above previous high of that candle. US Dollar still under pressure below key moving averages. I will use my levels of support/resistance and pivot points to measure price action.
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