European share markets had a mixed opening on Wednesday following Tuesday’s session which saw prices erase their early gains at the end of a volatile trading session. This sudden change in investors’ trading stance took place after EU officials struggled to reach a common plan on measures to mitigate the negative impact of the pandemic and aid the recovery from it. In addition, investors also realised the epidemic was still far from controlled amid high death tolls yesterday. This has had a big impact in reversing any bullish market sentiment that had been built over the past few days with investors now likely to remain cautious ahead of new concrete information, data and important meetings such as today’s FOMC minutes.
There have been no significant moves in Europe so far with most benchmarks trading slightly lower amid lower levels of volatility today. The steepest decline comes from Paris where the CAC-40 Index is being led down by energy shares as investors look to reduce their exposure ahead of today’s release of US crude oil inventories as well as this week’s highly anticipated meeting in which Russia and Saudi Arabia will try to reach an agreement to bring more stability to oil markets. The French CAC-40 is currently challenging its first available support at 4,365pts (38.2% Fibonacci retracement) before the main one located at 4,315pts (50% Fibonacci). The 21-day moving average has already turned around and now plays a resistance role to the market. However, the 4,315pts level combined with the 150-pts wide gap zone between 4,290pts and 4,140pts should represent a solid support zone and may prevent the market from declining further.
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.