SP500 closing positively yesterday, for a 3rd day in a row. The SP500 posting a significant rally, retracing most of the losses made on late SEP and early OCT in 3 days of trading, the index is currently trading at the 76.4 fib level of the decline that started on SEP 19th highs to OCT 9th lows. The Index is trading at levels of 1708, which acted as resistance on early AUG. a break above current levels targets 1725 next and the all-time highs at 1732.81. Alternatively support is at yesterday’s lows at 1685.94.
USDJPY is trading near the monthly highs set on OCT 1st. the pair has retraced some of the losses made on SEP and early OCT. failing to break the monthly highs could shift bias once again to the downside a break below yesterday’s lows at 98.01 is needed to confirm. Alternatively a break above monthly highs would target 99.00 next, followed by 99.70.
USDCAD posting a long bearish day on Friday, retracing latest gains in the pair. The USDCAD has encountered resistance at the 61.8 fib of the decline set from early SEP highs to SEP 19th lows. Bias in the pair remains to the downside and the preferred strategy is selling strength as long as the pair is trading below last Friday’s highs at 1.0417. Support is at 1.0327, with a break below exposing 1.0283 next.