European markets had a mixed opening on Wednesday after most benchmarks hit major support levels after yesterday’s downside moves. Market sentiment remains hesitant as most investors now seek further bullish catalysts before taking prices higher. Surprisingly, the FTSE-100 Index is one of today’s best performers with the index trading higher and evolving inside an encouraging technical configuration. The difficult negotiations between Boris Johnson and EU officials on the Brexit deal, and more specifically on fishing rights, had a significant negative impact on Sterling. However, this has also made the large companies of the FTSE-100 Index more competitive than ever on international markets and this has helped sustain investors ‘appetite.
From a technical point of view, the index is still trading inside a bearish flag pattern, challenging the 6,000pts level close to the upper band. However, the market hasn’t registered any new market low since its double rebound over 5,800pts while the Relative Strength Indicator has already broken-out of its bearish trendline as well as the key 50% level to tip the index into buy territory. Even if this is seen as a bullish situation, the price will have to clear the 6,080-6,120pts zone to unlock an extended bullish potential at first 6,170pts, then 6,300pts, then 6,420pts and ultimately 6,510pts. On the downside, the first available support is at 5,950pts 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.