It has been another choppy sideways session on Thursday although the stock markets continue to grind ever higher, and from the look of the charts this may well continue to be the case. In particular, having now broken above 7000, the ASX appears t be very well underpinned.
The currency markets are non-directional, and further choppy sideways trade may lie ahead although keep an eye on the Aud$, which may be in the process of forming a head/shoulder top, which if this is the case, on a break below 0.6850 would have a measured target of around 0.6665. Elsewhere, EurUsd may be forming a small bearish flag, which could see a run towards 1.1085. On the other hand, Sterling looks a bit more positive today and the short term momentum indicators do suggest the chance of some Sterling gains against both the Euro and the Aud$. US$Jpy is coming up against heavy resistance at 110.20/50 but a break of this area could see a stronger advance towards 112.40.
WTI may see some short term gains but nothing to get excited about and I still prefer to sell rallies towards 60.00.
|1 Hour||Turning Lower?||Turning Higher||Neutral – Turning Higher?||Turning Higher||Turning Lower?||Turning Lower|
|4 Hour||Turning Neutral||Turning Neutral||Neutral – Turning Higher?||Bullish Divergence||Neutral – Turning Lower?||Turning Neutral|
|1 Day||Turning Neutral||Neutral – Turning Higher?||Neutral – Turning Lower?||Turning Neutral||Neutral – Turning Lower?||Turning Lower|
|1 Week||Neutral||Neutral||Turning Neutral||Neutral||Neutral – Turning Higher?||Neutral – Turning Higher?|
|1 Hour||Turning Higher||Neutral – Turning Higher?||Turning Higher||Neutral||Neutral||Neutral|
|4 Hour||Turning Neutral||Turning Higher||Up||Neutral||Neutral||Turning Higher?|
|1 Day||Turning Higher||Turning Higher?||Up||Possible Topping Formation||Turning Lower?||Turning Lower|
|1 Week||Neutral – Turning Lower?||Up – Overbought||Neutral – Turning Higher?||Bearish Divergence||Neutral – Turning Higher?||Neutral|
|1 Hour||Neutral||Neutral – Turning Lower?||Turning Higher||Neutral||Neutral||Possible Basing Formation|
|4 Hour||Turning Neutral||Neutral – Turning Lower?||Neutral – Turning Higher?||Turning Neutral||Neutral||Turning Lower?|
|1 Day||Neutral – Turning Higher?||Neutral||Neutral||Neutral – Turning Higher?||Neutral||Turning Higher|
|1 Week||Neutral||Possible Basing Formation||Turning Neutral||Neutral||Neutral||Turning Lower?|