By Dominic Picarda.
The QE party is likely to keep going for now. As we belatedly learnt yesterday, US job-creation has fallen short of expectations recently. As such, the Fed will probably keep the printing presses clanking away at their current rate into 2014, which is good for stocks and gold. The more inflated the stock market becomes, the worse the eventual decline once the stimulus is withdrawn, in my view. That is a problem for another day, however.
For now, I stick to the bullish line on equities that I have been consistently stressed for a vey long time. I seek to buy on the end of the dip that has followed yesterday’s fresh highs.
British Pound/US Dollar
Monday: “I am targeting upside initially of $1.6260 and perhaps beyond.” Weak US jobs creation and the likelihood of yet more QE has pushed GBPUSD to within a couple of pips of my target overnight. I look for $1.6309 very shortly.
Support: $1.6208– Resistance: $1.6380
Support: $1.6145 – Resistance: $1.6320
Support: $1.6117 – Resistance: $1.6260
Support: $1.6048– Resistance: $1.6231
DAY: I’d buy a bounce back through the 13-fourhourly EMA.
POSITION: Stay long for now.
Dominic Picarda CFA, CMT writes the Trader column at http://www.investorschronicle.co.uk/comment/the-trader