During the early trading session, Asian stocks traded mixed as investors digest the government bond sell off from major central banks, as yields reached its highest levels since November. The Nikkei share average closed almost flat with a 0.03% increase, the Hang Seng Index was down 1.12% and the Shanghai Composite rallied 3.67% led by gains in the electricity, utilities and retailers sectors. Following the release of positive data from Australia the AUD traded higher against a basket of major currencies. The Home Loans for the month of March rose 1.6%, above the expected figure of 1%, this positive data indicates higher demand in the housing market.

During the European session, the British Pound continued to climb higher against the Dollar following strong UK data and the pair is currently trading at its highest level since December. The Manufacturing Production for the month of March showed that the inflation adjusted value of output produced rose 0.4%, higher than the forecast figure of 0.3%. The EUR/USD also traded higher as higher yields along with the global bond selloff pushed up the Euro. Furthermore, Greece paid a loan installment of 750 million Euros to the Monetary Fund lifting fears that the country could go into default, however, the nation is yet to lay out reforms and reach an agreement for an extension on the current debt bailout.

During early U.S. trade, American stocks traded lower as borrowing costs across global banks reached its highest levels since late last year. Nasdaq Composite is down 0.44%, S&P500 down 0.38% and Dow Industrial dropped 0.31%

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Once you understand the concept of a trend, the next major concept is that of support and resistance. You'll often hear technical analysts talk about the ongoing battle between the bulls and the bears, or the struggle between buyers (demand) and sellers (supply). This is revealed by the prices a security seldom moves above (resistance) or below (support).

Why Does it Happen?

These support and resistance levels are seen as important in terms of market psychology and supply and demand. Support and resistance levels are the levels at which a lot of traders are willing to buy the stock (in the case of a support) or sell it (in the case of resistance). When these trendlines are broken, the supply and demand and the psychology behind the stock's movements is thought to have shifted, in which case new levels of support and resistance will likely be established.

Round Numbers and Support and Resistance

One type of universal support and resistance that tends to be seen across a large number of securities is round numbers. Round numbers like 10, 20, 35, 50, 100 and 1,000 tend be important in support and resistance levels because they often represent the major psychological turning points at which many traders will make buy or sell decisions.

Buyers will often purchase large amounts of stock once the price starts to fall toward a major round number such as $50, which makes it more difficult for shares to fall below the level. On the other hand, sellers start to sell off a stock as it moves toward a round number peak, making it difficult to move past this upper level as well. It is the increased buying and selling pressure at these levels that makes them important points of support and resistance and, in many cases, major psychological points as well. 

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What is it? Governor Wheeler is due to hold a press conference about the Financial Stability Report, in Wellington.

As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

When? May 12^th at 5:05pm Eastern Time.

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the NZD to rise.

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What is it? It provides insights into the bank's view of inflation, growth, and other economic conditions that will affect interest rates in the future.

When? May 12^th at 5:00pm Eastern Time.

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the NZD to rise.

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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

1. Crazy market moves?

There's quite a bit of volatility in markets this morning.

Investors are selling bonds and yields are moving up. Most major stock markets are in the red, especially in Europe. And the U.S. dollar is falling against all other major global currencies while the euro is rising, up 1% versus the greenback.

On the commodity side, gold prices are stable. Oil is rising slightly.

2. Stock market movers -- EasyJet, Carlsberg, Allianz, Shell

European sentiment is being dragged down this morning as some big companies are reporting disappointing corporate results.

Shares in easyJet (ESYJY) are falling by roughly 8% in London after the low-cost British airline warned that a recent French air traffic control strike in April would cost the company roughly £25 million ($39 million).

Shares in Carlsberg (CABGY) are off by 5% in Europe after investors reacted to the brewer's latest quarterly results. Its business continues to decline in Russia.

Allianz (AZSEY) stock is dipping by about 2.5% after the company reported its earnings.

Meanwhile, shares in Royal Dutch Shell (RDSA) are edging down slightly in Europe, but is outperforming the market. The company has just received U.S. approval to drill in the Arctic. However, the oil firm will need a few more approvals before drilling can begin.

3. Earnings and economics

GoDaddy (GDDY) and Zillow (Z) will report after the close.

The Treasury Department will give a budget update at 2 p.m. ET.

4. Monday market recap

It was a negative day on Monday. The Dow Jones industrial average lost 86 points, the S&P 500 dipped 0.5% and the Nasdaq edged down by 0.2%.

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11

May

Time is ticking and you continue trading without our signals?

During the early trading session, Asian stocks traded higher as traders sought refuge in stocks following China’s rate cut. The People’s Bank of China voted to set the interest rate at 5.10% down from 5.35%, an economic slowdown in the country remains a concern after a number of recent negative data releases from manufacturing and services sectors. The Nikkei share average was up 1.25%, closing at 19,620 points and the Shanghai Composite rallied 3.35%. The AUD and NZD traded lower against a basket of major currencies as currency traders sentiment weighs over China, furthermore, New Zealand released a negative report showing that the number and value of card transactions with merchants had declined 0.7%, analysts had expected an increase of 0.5%.

During the European session, currencies are trading with little movement as economic reports from the Eurozone are today scarce. The British Pound is trading with Bullish sentiment against the Dollar as the Bank of England kept its monetary policy unchanged, traders are now awaiting the release of Wednesday inflation report to determine the state and growth of the economy. Currency traders also remain cautious ahead of talks between Greece and its creditors, the countries finance ministers need to lay out reforms in order to reach an agreement over the current debt bailout. If an agreement is not reached, then the country could go into default.

During early U.S. trade, stocks continued to trade higher after Friday’s rally. Wall Street remained supported following Fridays Nonfarm Payrolls. The economic report showed that 223,000 more people were employed during the previous month, only slightly down than the expected figure of 224,000 and up from the previous month, indicating growth in the jobs sector.

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What is it? It checks the change in the number of new loans granted for owner-occupied homes.

It's a leading indicator of demand in the housing market - most homes are financed, so it provides an excellent gauge of how many qualified buyers are entering the market.

When? May 11^th at 9:30pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.

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What is it? It checks the interest rate at which the BOE lends to financial institutions overnight.

Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

When? May 11^th at 7:00am Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the GBP to rise.

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