Stock markets drifted lower on Friday in Europe, extending yesterday’s losses as many investors switched their exposure from risky assets to safe havens on the fresh advance of the coronavirus. In addition to lingering concerns of the spread of coronavirus outside of China, recent disappointing economic data from Asian countries like Japan, Australia and Korea also weighed on investor sentiment. This risk-off mood takes place following fresh warnings from huge international groups like Alibaba and Apple on the business disruption caused by the deadly virus. However, markets in Europe are not entirely being driven down by these factors. Miners and energy companies are Europe’s worst performers today as traders digest a possible ceasefire in Libya and this is stabilizing the oil price as the week draws to an end.
Today traders will pay close attention to the EU’s inflation report, which is already sparking bullish price action on the single currency. The Stoxx-50 Index is currently challenging its support level at 3,800pts after it broke out from its rising wedge pattern which is usually an indication of an upcoming trend reversal. The 89-period moving average has already reversed itself while the MACD indicators seems to plead for a bearish continuation. The next targets are 3,770pts and 3,740pts if the support at 3,800pts breaks today.
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.