US stocks and treasury yields stage a strong rebound today, thanks to earnings surprises and solid economic data. In particular, investors cheered Walmart, which reported best Q1 same-store sales growth in nine-years. At the time of writing, DOW, S&P 500 and NASDAQ are all trading up more than 1%. 10-year yield is also back above 2.4 handle at 2.402.
The positive developments in the US pull Dollar broadly higher.
Technically, EUR/USD is set to take on 1.1173 minor support. Break will suggests that consolidation from 1.1111 has completed at 1.1263. retest of 1.1111 should be seen next.
USD/JPY is eyeing 110.04 minor resistance. Break will indicate short term bottoming at 109.02 and bring stronger rebound back to 55 day EMA at 110.95.
The strong rebound in S&P 500 puts it firmly back above 55 day EMA. That dampens our bearish view that rise fro 2346.58 has completed at 2954.13. We’ll see from if SPX could extend the rebound to retest 2954.13 high next. Even though we don’t expect a break there. Confidence is just average.