Reuters reports that in Brussels today the European Commission is to propose further euro zone integration to include all states, not just those using the single currency. Among some of their rather woolly plans is for the current bailout fund to become an EU institution under the control of the European Parliament.
On CNBC TV yesterday Turkey’s foreign minister Mevlut Cavusoglu warned that if President Trump decides to base the US embassy in Jerusalem rather than Tel Aviv this could bring chaos to the region. He added, ‘this can go as far as severing Turkey’s ties to Israel’.
DAX 30
Back down towards the bottom of the recent sideways band with a series of small descending highs and keeping the MACD bearish.
SHORT TERM TRADER: Short at 12960; stop above 13225. First target 12700.
POSITION TAKER: Square.
FTSE 100
Bearish pressure building slightly as we consolidate at these lower levels inside a right-angled triangle. A break below its lower edge has a measured target at 7120.
SHORT TERM TRADER: Short at 7470; stop above 7400. Target 7125.
POSITION TAKER: Square.
S&P 500
Gapping up on Monday’s open to tough a new record high only to drift back towards Friday’s spike low. All rather unsettling but looking as though the commodity channel index will roll over to sell mode.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
The soap that is British politics took another lurch as Sky News reports that a plot to bomb Downing Street’s security gates and knife PM Theresa May was foiled; two men are in court today on trial on terrorism offences. Cable clinging on despite waning bullish momentum.
SHORT TERM TRADER: Long at 1.3425; stop below 1.3340. Target 1.3620.
POSITION TAKER: Long at 1.3325; stop below 1.3340. Target 1.3590.
EURO/US DOLLAR
Trying to find support from what had been trend line resistance as bullish momentum slumps.
SHORT TERM TRADER: Small long at 1.1870; stop below 1.1795. Target 1.2050.
POSITION TAKER: Square.
GOLD
Closing below the bottom of the symmetrical triangle and now they’re blaming Bitcoin for lack of interest in precious metals. A 13 acre plot in St Vincent and the Grenadines was put up for sale with an asking price of 600 Bitcoins.
SHORT TERM TRADER: Short at 1281; stop above 1290. Target 1260.
POSITION TAKER: Square.
Nicole Elliott is a long-standing Member of the Society of Technical Analysts and has taken over the IC’s trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.
