Stocks slid lower on Friday in Europe, extending yesterday’s losses, and following the bearish trend overnight in Asia, as risk appetite fades across the globe. Despite a positive start to the week, record increases in the number of infections and deaths in several countries (California, Florida, Mexico, BRIC countries etc…) has brought some uncertainty back to the markets and impacted market sentiment. Even if most investors, reassured by unprecedented monetary and fiscal stimulus, still believe in the soundness of economies, they are also digesting the fact the virus is not disappearing. This situation leads them to temper their investments and brace for potential new local lockdown measures this year, which would make the current recovery slower than initially estimated. Bullish trends remain valid so far on most benchmarks, but this situation increases the likelihood of slightly less directional markets in the coming weeks as traders may wait for significant progress on the virus front to increase their exposure to riskier assets.
The Stoxx-50 Index is trading towards its first available support level, over 3,250pts, in a corrective move inside its bullish channel. The market continues to register fresh highs while the lows are above its short-term bullish trendline, which is keeping the 21-day moving average bullish and acting as a dynamic support for the price. The upward target remains just below 3,400pts but a break-out below the 3,250pts zone could see the price fall back to 3,175pts 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.