By: Bastian Rubben
Wall Street closed the worst week since the beginning of the year and we see more signs for a possible bearish correction. NASDAQ was the only index among the three major that closed on the green territory on Thursday, mainly because, once again, Apple. A break-down at 2700 points could be the opening bell for a bearish session. In the S&P 500, the crucial level for a beginning of the correction is at 2700 points.
The Non-Farm payroll data, which published on Friday, disappointed and showed that the American economy created just 107K new jobs during last month, against analysts' estimations for additional 200K new jobs. These less-than expected data will probably have some effect on the markets during the day, though the low volumes of the holidays do not give too many trading opportunities.
On the technical aspect, the USD was weakening against the major pairs, but it still tries to break-through. The Euro, a weak currency of its own, broke the support at 1.325, which I analyzed last week, and got close to the target I set at 1.30. Many buyers have waited around this round number, as well as short-positions holders that wanted to cover their positions and the combination of these two elements created a strong support at 1.30. Therefore, the Euro might correct up from this point, to 1.315. However, if it breaks-down the "Head & Shoulders" pattern that created above the support, the currency might slide to 1.28.
