European equity markets drifted lower on Friday, following a global trend after mounting virus-related fears hit sentiment at the end of the week. The recent market euphoria fed by further stimulus plans and corporate results, peaked on Thursday as Joe Biden’s inauguration as President pushed US markets to record highs. Following that it seems most investors now feel the party is over and are back to the reality of the pandemic, after the situation worsened in many countries.
Technically speaking, this return to the “risk-off” mood can be seen on most charts as a “bull-trap” situation yesterday, after many benchmarks briefly edged higher than their major resistance level before collapsing again inside their short-term consolidation patterns.
Even if the market correction is sharp, there is no real threat to the long-term bullish trend as no major supports have been broken yet. Investors may be tempted to put the rally on hold by taking some profit ahead of the weekend, but the lack of a strong bullish market reaction next week could lead prices to a deeper correction.
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).
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.