Saturday, January 13, 2018

Week Ahead 3

US equities broke the trendline resistance and almost are near parabolic phase.

DAX could not even touch the 13500 previous high as surge in EUR put a pressure on European equities in the second part of the week.

The valuation gap between US and EU increased again.

The leaders were Basic Materials (fueled by the commodity prices) and Industrial Sector. Utilities are still bearish due to the increase in yields.

Yields on both sides of the Atlantic hit record high, while the German-US spreads remained on the same level. 

Commodities followed trough last week breakout. 

Energy driven by oil,gold and palladium were the biggest winners last week. 

Agricultural commodities seem to be heading to retest the previous low.

Golding retested the 1300 area and now facing the 1360 major resistance. It appears that it is the USD weakness rather gold strength that underpins this move.

The week was about USD weakness again. DX is near a resistance, if it breaks the next support is at the june '13 level. 

The JPY was the best and the CAD was the worst performer relative to the USD last week.

EUR/USD broke the 1.2100 resistance area. The next major resistance is around 1.2650-1.2750 measured move and June '13 levels. Should those fail the next target is 1.4000 May '14 high.

GBP/USD is facing with the 1.3830 February '16 low level.The next resistance is at 1.4800 pre-Brexit vote level.

Both AUD and NZD are in a strong uptrend but still within a longer term sideways range.

USD/JPY is facing the 110.80 November '17 low support level.

USD/CAD is retesting the 1.2430 October '17 low level.

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