Two trades to watch: EUR/USD, S&P500
Fiona Cincotta March 10, 2021 8:03 AM
EUR/USD heads towards 1.1850 on USD strength. S&P 500 futures trade mildly lower ahead of CPI data.
EUR/USD heads towards 1.1850 on USD rebound
ECB rate decision is due tomorrow
Where next for EUR/USD?
Having failed to hold 1.19 EUR/USD is trading lower -0.2%. It trades below its 20 & 50 sma on the 4 hour chart a bearish chart.
The RSI is supportive of further losses with some way to go oversold territory.
Immediate support can be seen at 1.1840 Monday’s low before 1.18 the round number and support from a descending trendline dating back to mid January.
Any attempt at a recovery would need to break over the 20 sma as 1.1890. A move beyond here could open the door to horizontal resistance at 1.1950 Feb low ahead of 1.20 the 50 sma. Beyond here the bulls could gain traction and eye 1.2115 the monthly high.
S&P slips cautiously lower ahead of CPI
After rebounding yesterday, the S&P 500 futures points to mild losses in cautious trade ahead of a big afternoon.
Where next for the S&P 500?
The S&P 500 has been trading in an ascending channel since early November. After hitting a fresh all time high in mid February at 3966, the price has eased lower.
The S&P 500 trades at the lower ban of the ascending channel and is currently testing the 50 sma. A move below this level could see the 20 sma and lower band of the channel at 3833.
The RSI points to a neutral bias, so it could be worth waiting for thw outcome of CPI data before taking a position.
A break out of this channel could see the sell off extended towards 3720 March low and 3660 Feb low.
Should the 50 sma hold a move towards the fresh all time high at 3966 could be eyed.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.