EURUSD: EURUSD posting a 2nd negative day in raw, Weekly signals for the EURUSD wore bearish after weekly price action has formed a bearish weekly outside week, which is a strong bearish signal. The EURSUD continues to slip this week as well. Latest decline have retraced 61.8% of the rally that started from May 17th lows at 1.2795 to June 19th highs at 1.3415. Our outlook is to remain bearish as long as we are below 1.3090 leaving room to sell rallies. Immediate targets are at 1.2984, Yesterday’s lows followed by 1.2954 which is the monthly lows. Resistance is at 1.3055 followed by 1.3086.
USDJPY: Strong bullish move for the USDJPY at the open of the European session. Price action this week in the USDJPY was mild after two very volatile weeks prior to the current week. Weekly signals for the USDJPY wore bullish after a strong rally last week retracing all of the prior week declines. On the daily time frame it looks like that the pair is forming base for an upward continuation, tough a break above and basing above weekly highs at 98.7 is needed in order to confirm continuation. Latest moves are indicative of indecision about the next move in the USDJPY. In view of this our call is being mildly bullish as long as we are above 97.2 with targets towards weekly highs at 98.7 followed by 99.27. The risk to this call is a move below 97.2 which would be a bearish signal.
SP500: Yesterday the SP500 has posed a strong bullish day for the 2nd day in a row, after placing a bottom on Monday’s trading session. Weekly signal wore bearish for the index after posting a weekly bearish outside week. The SP500 has retraced 50% of the decline from monthly highs posted at June 19th at 1654.6 to monthly lows posted this Monday at 1559.1. Current levels could offer a selling opportunity for the index, resistance are at 1606 followed by 1619 which is the 61.8% Fibonacci level as well. A move above this level will be a strong bullish signal. Targets are at 1593 followed by 1585.