As widely flagged, and as the futures yield curve had priced in a while ago, the US Federal Reserve raised its key rate by 25 basis points – which it described as ‘rising at a solid rate’ – so that the Fed Funds target is now between 1.75 and 2 per cent. The unusually short accompanying statement, running to just 320 words, also suggested another two 25 basis point increases apiece were due later this year.
Last night in Moscow crowds from all over the world gathered to enjoy the official start to football’s World Cup. Another great opportunity for a despotic strong-man to shine on the global stage. The first match kicks off today with the two weakest teams, according to FIFA rankings – Saudi Arabia and Russia.
DAX 30
Momentum is rubbish, as is the MACD, as we go-stop in a tiny range between 12600 and 12900 waiting for the next central bank meeting.
SHORT TERM TRADER: Tiny short at 13145; stop above 13050. Target 12400.
POSITION TAKER: Short at 12935; stop above 13050. Target 12000.
FTSE 100
MACD is in the red and now momentum might possibly be joining it.
SHORT TERM TRADER: Tiny short at 7855; stop well above 7800. Target 7400.
POSITION TAKER: Small short at 7799; stop well above 7900. First target 7400.
S&P 500
Stalling as it was almost overbought.
SHORT TERM TRADER: Considering going short tomorrow depending where we close.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Though the MACD has been positive all this month, we have yet to garner proper bullish traction. Perhaps yesterday’s little dragonfly doji might see a weekly close above immediate trend line resistance.
SHORT TERM TRADER: Tiny long at 1.3275; stop below 1.3300. Target 1.3800.
POSITION TAKER: Small long on at 1.3350; stop below 1.3275. Target 1.4200.
EURO/US DOLLAR
Looking a bit perkier after yesterday’s tiny bullish engulfing candle – though still under the neckline of the potential V-shaped reversal at 1.1800. With a little luck the positive MACD and bullish momentum will allow a weekly close above here on Friday.
SHORT TERM TRADER: Small long at 1.1685; stop below 1.1700. Target 1.2000.
POSITION TAKER: Long at 1.1660; stop below 1.1600. Target 1.2400.
GOLD
Testing the top of the little triangle in a largely irrelevant price move.
SHORT TERM TRADER: Tiny short at 1294; stop above 1310. Target 1265.
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.
