Short-term trading levels for the ECB and US NFP announcements
With the ECB announcement on eurozone monetary policy due today, and the US nonfarm payrolls release tomorrow, we look at some markets likely to be affected by the news.
AUD/USD tests very strong support at 7520/15, expected to be the best support of the week. Long traders should use stops below 7490. A break lower, however, is a sell signal and initially targets 7440/7435.
Gold tests the best support for today at 1210/08. Long positions need stops below 1202. However, a break below 1202 (and close for confirmation) is a sell signal, targeting 1198/97 and 1193.
NZD/USD has broken important support at 6915/20. Therefore the outlook is negative if we hold below this level. Downward movement would initially target the December low at 6860 and then 6845/40.
The key to direction for USD/JPY is the strong resistance at 114.45/55. Holding below here is negative and targets first support at 114.05/00, then better support at 113.60/55, for profit-taking on any shorts.
Short positions need stops above 114.90. An unexpected break higher, however, targets 115.10/20 and then 115.60, before quite strong resistance at 115.85/95.
The E-mini S&P level of 2360/58 is both short-term Fibonacci plus important four-month trendline support. So this is the most important support of the day. Bulls must defend this area if we are to remain in a clear bull trend. A break lower, however, targets 2350/48, 2338/37 and then 2333/32.
The E-mini Dow Jones has strong support at 20835/820. This is the best chance of a low for the day again. A break lower would target 20730/720, then support at 20650/640, and perhaps as far as good support at 20580/560.
A recovery from strong support at 20835/820 is likely. This would target first resistance at 20880/890 then stronger resistance at 20910/920. This is the main challenge for bulls and a good chance of a high for the day. Short traders need stops above 20970. Be ready to buy a break above here, targeting 21000 and 21040.
Technical Analyst & Trader
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