U.S. equities skyrocketed, continuing the previous day’s move even more dramatically then what we saw in yesterday’s price response to the FOMC minutes. In fact, the Dow experienced the largest bullish day in over 3 years. Oil prices have continued to fall and though it tried to rally, reversed to close at the lowest point in over 5 ½ years. The dollar index, meanwhile, gained and hit a new multiyear high.
The EUR/USD continued to dip and test the annual support level today. We were hoping for a chance to sell this pair on a small bounce higher but did not get the opportunity. We are now looking for a bounce or break through this support level as we expect the long-term bearish trend to continue.
The AUD/CHF jumped higher after the Swiss cut their rates to -0.25%. That is right, the Swiss decided to charge people for placing money on deposit in their country. This will likely cause this pair to rally up to and through resistance so we are watching for an opportunity to buy on a dip.
The NZD/CAD rallied and pushed us back into the positive. We are watching for price to break through resistance. If we see oil break below $54 per barrel, this pair should have no trouble rallying to our target.