Daily market review – April 6th 2017

redtogreen

The trading on the Wall Street stock exchanges closed yesterday with price declines that began towards the close of trading, following a positive trend from the publication of a strong employment report in the US private market.
The ADP employment report pointed to an addition of 263,000 jobs in the private market in March, well above the forecast of an additional 170,000 jobs and an improvement from February’s 245K jobs.

Yesterday the meeting of the Federal Reserve were published and according to it, bank officials want to reduce the balance of $ 4.5 trillion, meaning that the bank wants to sell some of the bonds it has accumulated over the past few years, and investors believe that the pace of interest rate hikes in the US will slow if the bank starts selling bonds.

On a daily summery:
The Dow Jones Industrial Average fell by 0.2%, the S&P 500 shed 0.3% and the Nasdaq lost 0.6%.

This morning, the price of the oil is trading in declines, but the price remained above $ 50.
The TWI is down by 0.5% to $ 50.8 per barrel and the Brent crude is down 0.5% to $ 54 a barrel.

Activity in China’s services sector in March grew at a slow pace for the third month in a row.
China’s services sector PMI fell to 52.2 points from 52.6 in February and the lowest in six months.

Trading Opportunity
USD/CHF

On a daily chart we can see that the pair is getting closer to a resistance trend line.

usd.chf d 6.4.17
Our tendency is to sell around this resistance.
How can we do that?
On an hour chart we are waiting for the pair to go a bit higher, towards the levels of 1.0090 – 1.0100 and to see a bearish divergence developing at the MACD and RSI.

usd.chf 1h 6.4.17
After that we we’ll be waiting to see a bearish pattern created and one which would be the trigger to a sell pair.

 

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