(+) Investment Recommendations April 5th

EUR/USD: Short-Term Sell (Update)

EUR/USD, 4-Hour Chart Analysis

The pair has been consolidating after the sell-off last week, but the Euro failed to gain traction against the Dollar. The weak bounce ran into strong resistance around the 1.0715 level and the common currency seems to be rolling over for another leg down towards the key 1.05 level.

Volatility might increase in the second half of the week after the release of the meeting minutes from both the FED and the ECB. The 1.0850 serves as long-term resistance while below the 1.05 level, the multi-decade lows at 1.0350 provide last-resort support for the common currency, with fundamentals still favoring the Greenback.

SP 500: Short-Term Sell (Update)

SP 500, 4-Hour Chart Analysis

The index triggered our short-term stop-loss following the great employment report, but the technical setup remains unchanged, with the 2351-2355 zone still being very much in play. A sustained move above the recent swing-high around 2368 is expected to lead to a test of the all-time highs near 2400 level.

Technology stocks are still pulling the indices higher, while financials remain among the weakest segments of the market following the strong correction after the “dovish” rate hike by the Federal Reserve. The coming week could be crucial for the long-term picture of the market, as current “internal” weakness might lead to a deeper correction.