Forex Marketz Daily Forex News – Fully Markets Update
S&P 500 (1,988.44)
The S&P 500 saw its biggest drop in over five weeks. The market fell below the key technical level of 2,000 and closed firmly lower.
Sellers are now eying the support at 1,985 then at 1,984.50. A daily close below the latter level will open the doors to test 1,967.50. We need a break back above 1,995.50 then a close back above 2,000 to see a reversal. If this happens, we would test the level neat 2,012/2,012.50.
Gold (1,257.10)
The yellow metal is testing the support at 1,252.50, which is near the trend line. A break below this level opens the door to test 1,240/1,239.99.
Should we hold and defend at the trend line support, we would then need a daily close back above 1,260.70. If this happens, the precious metal would then test 1,275.50.
GBP/USD (1.61108)
The Sterling has broken a five day losing streak versus the dollar. There is a Doji just above 1.6050, see chart below. This indicates some seller hesitation. A close in the positive today could hint of a brief recovery.
A daily close above 1.6225 could see a bounce back towards 1.63 then 1.6320. A failure, which is likely due to the overall bearish nature of the market, would need a close below 1.6060. If this happens we would aim for 1.5960 and lower.
A small Forex trading class: Dojis are a sign of indecision among Forex traders. They do not indicate a strong reversal or a good reason to enter long trades. Until we see a move above 1.6150, caution is advised here. Watch and see.
