Last week we noted that we expect SPX support to hold, and the index to remain within the uptrend channel. In reality, channel support wasn’t even challenged and, with a little help (in the form of massive liquidity injections) from PBC and the FED, the index made new highs on Wednesday and Thursday, keeping the weekly uptrend intact:
Market breadth followed suit by reaching overbought levels on Wednesday, and gradually declining ever since:
For next week, the SPX is printing higher targets, and the daily pivot line is at 3320.
The projected trading range for the SPX is 3275 – 3385:
The risk-off attitude was sharply manifested in the currency markets, where the USD exploded against the CHF, JPY, EUR.
Despite the sharp up move, USDCHF remains well below the elusive parity level. Considering the overbought levels reached by the CIT Oscillator, we don’t expect the upside weekly target to be exceeded.
The projected trading range for the USDCHF is 0.966 – 0.982:
USDJPY came close to the January highs, but momentum stalled on Friday. Nevertheless, the pair will remain in an uptrend, as long as it keeps above the daily pivot line, currently at 109.6.
The projected trading range for the USDJPY is 108.86 – 110.5:
The EURUSD attempted reversal at the end of January failed miserably, and the pair is in the process of challenging the 2019 lows. All things considered, we expect these lows to hold for the time being.
The projected trading range for the EURUSD is 1.09 – 1.104:
For OIL, GOLD and more forex weekly targets and Buy/Sell pivots, check the TV page which gets updated on Monday.
*Please note that the signals are provided for informational purposes only. They are in effect as of the close on Friday and may change as soon as the markets re-open.
Charts, signals, targets and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8
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