By: Bastian Rubben
As I expected, the US stock market hit by the disappointing Non-Farm payroll data from Friday and indices shed 1% yesterday. Today the result season licks off with the reports of the largest aluminum producer Alcoa (AA) and analysts expect that many of the S&P 500 companies will now show good results as before. Therefore, if the index break-down strongly the support at 1380 points, we might see massive selling of the stocks.
The less-than expected economic data weakened the USD against most of the major currencies but since the USD usually has a negative correlation with the stock markets, the declines in Wall Street supported the currency and blocked some of the bearish momentum.
The pair USD resumed strengthening against the CHF after the CHF failed in breaking down the support at 0.90. It looks like the USD is ready for a strong break-up and if it crosses above 0.922 it might try to break-through 0.93. On the other hand, the arrangement of the recent candlesticks indicates for a possible bearish reversal and a break-down at 0.91 might take the pair to the support at 0.90 again, and complete the "Inverted Cup & Handle" pattern there.
