The U.S. stock managed to close Tuesday’s session higher, following a choppy trading in the opening minutes. S&P 500 rose 1.17% to 1324.18 as Chicago Fed president – Charles Evens, said he would support measures to generate faster job creation. Dow Jones Industrial Average gained 162.57 points or 1.31% to 12573.80, while NASDAQ Composite added 1.19% to 2843.07.
Meanwhile, the European stock gained for first time in three sessions despite Spain debt problems. Yesterday, Fitch cut the long-term debt ratings of 18 Spanish banks saying the nation will “significantly” miss its budget deficit targets. In the same time, Spain’s 10-year bonds yield reached new record high of 6.8%. Nevertheless, the broad based STOXX Europe 600 index closed the session 0.63% higher at 243.44, amid speculation that the Federal Reserve will take steps to stimulate the economy. The German DAX Index added 20.19 points or 0.33% to 6161.24, while, the French CAC 40 added 0.14% to 3046.91.
This morning the Asian stocks are trading higher as Japan machinery orders rose more than expected. The total value of machinery orders placed at major manufacturers in Japan increased with 6.6% in April, beating the estimates for 4.9%. This result serves as indicator for strong business confidence and better forward outlook. Nikkei 225 is trading 0.67% higher at 8593.80 one hour before the close bell. Meanwhile, Hang Seng is gaining 73.51 points to 18946.07.
Binary EUR/USD continues to consolidate around 1.25, after it met resistance at 1.2667 which is 38.2% fibo retracement of the 1.3284-1.2286 drop. On the opposite direction, the short-term support is seen around 1.2440, followed by the recent bottom at 1.2286. The overall, picture remains negative with key target at the psychological 1.22. On the opposite direction, the positive correction is expected to be limited to 1.2825.
The market indicator continues to fluctuate around the psychological 1300, as it receives strong resistance at 1335. Break above this level will move the target on 1360, which could be the last barrier before the top at 1422.38. On the other hand the key supports are expected at 1248 and 1207, which are 50.0% and 61.8% fibo retracements, respectively of the 1074.77-1422.38 movement.
DAX remains on the negative downtrend with main target on 5913. Meanwhile, the short-term support is expected around 6080, followed by 6000. On the opposite direction, the crucial resistance remains at 6445, which is near to the 200-period SMA on H4.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.