Here is an uber quick look at what developed in the markets this week and what to look for next week, namely the EUR/USD and S&P 500.

The EUR/USD suffered a major setback Wednesday, Thursday and Friday.  It just could not stay above the 1.3800 level and fell off aggressively back into the former range.  This makes a retest of range lows a reasonable assumption.    The short-term upward trendline was broken, and ultimately the daily downtrend was left in tact other than a slight penetration.  A break below lows at 1.3430 would set up another leg down in the downtrend.  A target for the break downwards is 1.3060.  False breakouts remain a high probability, as has been stated in the daily analysis for quite some time, and as was just witnessed with the small push above 1.3800 and subsequent retreat.

On average (14) the EUR/USD is moving 302 pips in a week.

EUR/USD Daily

Other than Friday, the stock market had a good week continuing to push above the 1150 mark and closing out the week at 1159.90.  Support now comes in at 1150, along with initial trendline support at 1140 and further support at 1125.  A drop back into this area would warrant concern and signal a false breakout.  Blue lines on the chart mark potential trendline support if the initial trendline line is broken.

Target on the upside is just below 1200 and if that is broken then 1250.  The average weekly movement for the S&P is just under 31 points.  Keep this in mind, as it will likely take a week or long to reach this initial upside target, and several weeks to hit the second target if this market continues higher.

SP-500 Daily

Cheers,

Cory Mitchell, CMT

By the way, this weeks newsletter, which will be sent out tonight/tomorrow morning, has some great stuff in it – filled with trade ideas and set-ups in SLV (silver), GLD (gold), AUD/CAD, USD/CAD, GBP/JPY and what stock sectors to look at.  Plus it takes a look at the strategies and tools I use as well as some warnings about what the main stream idea is pushing.  Sign up on the right hand side if you haven’t already….you don’t want to miss this one!  It’s Free!

One Response to “EUR/USD and Stock Market Weekend Briefing”

1. EUR/USD-Possible Re-Test of Lows, Choppiness Continues | Vantage Point Trading says:

   March 22, 2010 at 1:48 am

   [...] broader perspective on this pair can be seen here: EUR/USD and Stock Market Weekend Briefing.  I will not post a lot in this daily outlook for March 22 since I continue to think there are [...]