All European benchmarks are trading significantly higher on Tuesday, extending yesterday’s gains, as market sentiment strengthened towards risk assets such as stocks and corporate bonds. This revived risk appetite, mainly built on hopes of an easing of the COVID-19 spread, is getting stronger and stronger as new reassuring data confirm the progress we saw during the weekend. In addition, investors around the world still have in mind the unprecedented global monetary response to this crisis and know that it could significantly sustain an extended rally if the virus starts to be brought under control in most impacted economies. While the current situation may tempt some investors to “catch the rebound” by buying the dip, others may want to remain cautious and wait for more accurate corporate reports to get a better idea of the extent of the economic damage before increasing their exposure to these markets.
The Stoxx-50 Index is being driven higher by financial shares with ING and Société Générale some of the best performers in Europe so far. The technical landscape of the Stoxx-50 Index is becoming really interesting as the price is now challenging its double resistance level (Speedline + 38.20% Fibonacci) following on from a bullish runaway gap opened up at the beginning of this week, which led to the validation of a bullish flag pattern (see attached chart). A clearing of the zone at 2,880pts is likely to extend the current rally towards 2,975pts and 3,075pts on a short-term basis.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.