By: Bastian Rubben
The USD resumed weakening on the second part of last week after the US indices rose 0.8% and completed the best 1Q since 1998. The pattern of the Friday's candlestick indicates that there is a strong support to the S&P 500 around 1400 points and it looks strong to continue the bullish momentum on the beginning of this week. NASDAQ, on the other hand, looks a little bit bearish mainly because the declines in Apple, but if S&P and Dow continue rising, the NASDAQ will probably join them.
The Euro managed to stay above the important resistance at 1.33 and it is currently rising upwards to 1.35. I analyzed the currency last week and mentioned that if it reached 1.35 then it would complete the "Cup & Handle" pattern under this support, as now the Euro is trying to break-through 1.34 in order to complete the mission. Many traders will wait with automatic orders above 1.35 and a strong break-up there might launch the Euro above the 200 SMA.
The pound was also mentioned in my analysis last week as I demonstrated the "double-top" pattern at 1.60. This pattern usually indicates for incoming bearish session, but I also suspected that the pound could surprise and rise above 1.60, which it did, and the target for the current bullish movement is 1.615.
