The stock market showed signs of slowing down in Europe on Thursday, despite a bullish correction in Chinese tech shares overnight, as the initial enthusiasm over a vaccine starts to wane. The worsening virus situation in many hotspots is weighing on market sentiment as it sparks fears of tougher containment measures that could bring further economic damage. While a bearish correction after the rally over the past few days would be logical and even healthy, fears of a W-shaped recovery are occupying more and more space in investors’ minds. Today’s session is likely to remain volatile as investors will have to cautiously monitor speeches from top central bankers at the ECB forum as well as major macro data from the US (CPI and jobless claims).
Technically, European benchmarks remain capped by major resistance, with buyers not strong enough to push the market higher. The DAX-30 Index has significant short-term resistance as 13,245pts and then 13,450pts. The first supports can be found just above 13,100pts and 12,900pts before the 23.6% retracement ratio at 12,825pts.
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.