Shares edged slightly higher in Europe on Wednesday despite a mixed session in Asia overnight fuelled by simmering Sino-American tensions. While investors now expect fresh US sanctions as a reply from the Trump administration to China’s behaviour towards Hong Kong, it certainly has not killed the optimistic mood reigning on markets right now. Developments on a drug treatment as well as no signs of the virus yet returning in some of the worst affected EU countries are boosting investor appetite for riskier assets and driving the current rally. Traders are keeping their focus on data having welcomed the US New Home Sales report yesterday after it surprisingly topped estimates and opened the door to a possible recovery. As previously said, data are likely to continue playing an important part in investors’ trading stance in the coming weeks. If numbers continue to prove reassuring, there will be a high probability market sentiment will send prices much higher than now, as there is still room to do so, even after the 30% rally we have already seen on stocks since the end of March.
The German DAX-30 Index is the eurozone’s best performer today with the price now flirting with the significant technical level at 11,600pts (Bearish gap closing). A clearing of this zone would open the way to fresh highs with the next resistance level located 850 points higher at 12,445pts on a short to mid-term perspective.
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.