Stocks have completed their mid-term bearish correction. The DAX defended the 12,900 support and broke the mid-term downwards trend line. This has led us to the local resistance at 13,170. Given the current sentiment, this level should be eventually broken and the price should aim at recent long-term highs.
Ahead of the NFP, USD is very strong. We have a bullish scenario on the USDJPY pair after the false breakout from the bearish triangle. Instead of the sell signal, the price sharply reversed and broke many important resistances. We do have a buy signal on this instrument.
USDCHF is still climbing higher. After the bullish breakout from the flag and the breakout of the 0.9875 resistance, the price tested this level as a support and drew a beautiful hammer. That confirmed the buy signal, so it’s no surprise that the price is sharply advancing higher.