Its major indexes ended the day session with gains

After the long weekend in the United States, following the holiday to be held on Monday, “the day the president,” we look at Wall Street ended a day with a significant rise.

After the long weekend in the United States, following the holiday to be held on Monday, “the day the president,” we look at Wall Street ended a day with a significant rise.

Its major indexes ended the day session with gains, with the Dow ending at 1.68% maximum after winning up to 10,269 points, the Nasdaq composite with hikes of 1.4% and the S & P 500 at 1.8%.

European markets showed in keeping with the feeling buyer’s market, profits in its main centers closing the day with gains averaging 1.5% while the FTSE, as the German DAX and the CAC.

The upward trend on Wall Street, joined to a decision by finance ministers of the European Union about setting a demanding timetable for Greece to bring its fiscal deficit, and take urgent structural measures to define the trend in the European square.

In the foreign exchange market saw a sharp decline of the dollar against the major pairs traded. Gold continued its recovery yesterday reached a ceiling in the area of 1121, reaching the lowest since early this month in 1045 units per ounce.

In this new day where we will meet Wednesday in the FOMC minutes as relevant data from the economic calendar, we look to Asian markets open with gains continuing the bullish feeling with the Nikkei soaring or 2.72% on closing, while the Yen gave ground against the dollar and the Euro.

The recovered oil trading positions at $ 77.13 a barrel in Asian electronic markets.

The Bank of England (BoE) reported in its minutes from the last meeting of the agency on Feb. 4 last, that the vote to keep interest rates unchanged was taken unanimously as expected, along with the decision to continue unamended asset repurchase program.

In addition the British government released its unemployment rate last quarter of last year, which was unchanged at 7.8%, a decrease of only around 3000 less than previous months.

Finally, since the Euro Zone was known that the trade balance ended in 2009 with a surplus of 22300 million euros, recovering from the historical record deficit of 2008.

Euro – Dollar:

Because of the weakness shown by the U.S. currency in the session yesterday, we could see this pair back nearly 200 points with a maximum in the 1.3780 area on the evening American, overcoming major pockets of resistance.

Today however, saw a decline of two currently trading at 1.3730 in after-known economic data from the European continent. The larger trend remains bearish direction force, despite the upward movement we see in yesterday. The area of 1.3710 support will be the first to take into account if the Euro continues towards short. Then 1.3685, 1.3640, and 1.3605 levels are the following intermediate stop.

The maximum area of 1.3780 yesterday is turning to observe a greater upward movement. There are trendline, and the neck line area of a double decker likely formed. Then 1.3815, 1.3850, and 1.3880 as the next resistance.

Dollar – Franco:

Contrary to our estimation according to an analysis of yesterday, this pair showed us a significant downward movement by breaking the lower limit of channel guiding its motion in 4 hours charts.

With over 150 pips tours, Swiss franc recovered positions on dollar weakness beyond the area where they broke above 1.0710 figure 1.0655 halting its advance.
Today we find the pair trading at 1.0686 making up positions at this time, 23.6% of the retreat of the last journey downward (see graph), by way of profit taking after yesterday’s tour.

The ground level will be reached 1.0655 yesterday to break the first support to see an acceleration of movement, then 1.0620, 1.0575, 1.0540 and surrounding areas will stop.

The change in resistance will be 1.0710, 1.0735, 1.0770, and 1.0800.

Pound – Dollar:

The cable was not unrelated to the strength of the U.S. currency Tuesday, developing a bullish rally against the dollar with a maximum in the 1.5800 area, exceeding the upper leg of the triangle formation.

In this new day, and then called the unemployment data and the minutes from the last meeting of central bank of England, we see this couple listed on ranges in the peak area yesterday.
As we see in 4 hours charts, and then discard the hypothesis of a triangle formation, we see the pair form an unlikely flag inverted (see figure), implying a possible decrease of torque from the current levels for now. In this scenario the media to consider will be 1.5735, 1.5680, 1.5635, 1.5570.

The resistance traces at 1.5820, price zone to be broken will void the flag in formation. Then 1.5860, 1.5900, and 1.5970.

Dollar – Yen:

Despite showing a sharp decline during the close yesterday, as a result of the weak dollar, this pair closed a bullish day, exceeding the upper limit temporarily bearish channel.

In this new day, we see the yen weakened against the dollar trading at 90.85 right now, confirming the break of the bullish channel. The direction of the pair shows signs bullish for today despite having traveled so far 85 points.

In more graphic look at the gestation of a Shoulder Head Shoulder figure reversed, whose neck line (confirming the same to be outweighed by the price) is in the area of 92.60 / 80 (see Graphic).

The levels of resistance from the actual price will be 91.25, 91.60 and 92,00. While the media will find them at 90.55, 90.20, 89.90 and 88.60.

Facundo Molina is founder and director of MolFX - Management, a company fully specialized in Foreign Exchange Markets, with an important client portfolio through Capital Markets Services LLC (CMS). He has a BA Business Management at the Universidad Nacional del Sur (Argentina), where he has a doctorate degree based on the application of Fibonacci theory into financial markets. He also acts as professor of new and experiments traders.