Each US 'Response' Raises More Questions

Fundamentals

US Secretary of State Rex Tillerson and Russia's Foreign Minister Sergey Lavrov met on Wednesday. Quite as expected, Russia's position on Syria remained unchanged. The tension is still high, which of course influences some assets. Moreover, the situation is aggravated by new US statements about the need to 'respond' if the crisis in Venezuela gets worse.
In this environment, cautious traders will most likely turn to safe havens. CFDs on gold keep rising and showing a strong bullish trend.
In terms of fundamentals, traders were monitoring BOE Governor Mark Carney's speech yesterday. The markets, however, didn't react, as Mr. Carney talked only about building infrastructure to fulfill the promises of FinTech.
The Bank of Canada decided on the key interest rate today. As expected, the benchmark rate remained unchanged, although the appropriate statements were made, among others regarding possible further GDP growth. The USD/CAD reacted by falling.
Today, the US PPI is being released at 12:30 PM GMT. The initial jobless claims report is due at the same time. The jobless claims number is expected to rise to 242,000.

Stocks

America’s Delta Airlines and Fastenal released their earnings reports yesterday. The latter's report was as expected, with the EPS at $0.46. The company’s stock on the NASDAQ opened with a gap down with fairly high volumes.
Delta Airlines exceeded expectations, with the EPS rising to $0.77. At the NYSE opening the stock also gapped, forming a window with compared to the Tuesday's closing price.
Russia's MICEX Index went into a dive. Technically, the index broke through the support, confirming the double top pattern. The target might be 1,935, which is not far from the current level. According to wave theory, the index may have entered the last correction wave. In this case is the current wave must be number 5 to align with the current model’s structure.

Currency Market

As we mentioned, the AUD/CAD pair continued to decline, with the 9-period EMA reversing top down on the weekly charts. Meanwhile, on the daily charts, the price and the MA are significantly diverging, which could signal a bounce. Currently the price has broken through the support at 0.9960, although it’s still early to say whether the price will remain below this figure. The pair may well return to the 0.9960  1.0050 corridor again. If the bears still manage to push the Aussie lower, the next support may be at 0.9750.
The EUR/JPY pair fell fairly heavily. One should note that the common currency is now trading within a diverging triangle, which, according to wave theory, is a correction pattern. If this is confirmed, a new upward wave may appear, with the price rising at least to 119 yen. For the time being, the trend remains bearish, with the support at 115.10/115.20 yen, which is a 161.80% Fibo retracement.

Nikolay Dudchenko, Olymp Trade Analyst

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