European stock markets
At once several terror attacks happened in Brussels on Tuesday which could have heightened the risks for the European economy. The initial market response was moderate. Nevertheless, a limited speculative downtrend correction may take place in stock markets. Let’s study the performance of the Indices_EU personal composite instrument which is made up from major European stock indices.
The pan-European STOXX Europe 600 Travel and Leisure index fell 2.1%. Other stock market indices remained almost unchanged. Investors still believe the recent expansion of monthly ECB bond-buying programme from 60bn to 80bn euros will improve substantially the financial performance of the companies. The economic data released on Tuesday were neutral. The March manufacturing PMI rose slightly in Eurozone but fell in Germany. The German IFO Business Climate Index edged up while the Economic Sentiment decreased. Till the end of March no significant economic data are expected in EU except for the consumer confidence index in Eurozone on Wednesday and the ECB economic report on Thursday this week.
Indices_EU
On the daily chart Indices_EU: D1 is in uptrend and has come close to its lower boundary. The prices rose by 15% from the low of August 2013 hit in early February. In the recent two weeks the personal composite instrument has been traded in a narrow range of sideways movement and has approached the support of the uptrend. The MACD and Parabolic indicators give sell signals. RSI is descending and has formed the modest negative divergence. The Bollinger bands have contracted which means lower volatility. The bearish momentum may develop in case the chart Indices_EU falls below the last fractal low, first Fibonacci retracement level and support of the ascending channel at 7869. This level may serve the point of entry. The initial risk-limit may be placed above the Parabolic signal and the last fractal high at 8453. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 8153 without reaching the order at 7869, we recommend cancelling the position: the market sustains internal changes which were not taken into account.
Position Sell
Sell stop below 7869
Stop loss above 8153
At once several terror attacks happened in Brussels on Tuesday which could have heightened the risks for the European economy. The initial market response was moderate. Nevertheless, a limited speculative downtrend correction may take place in stock markets. Let’s study the performance of the Indices_EU personal composite instrument which is made up from major European stock indices.
The pan-European STOXX Europe 600 Travel and Leisure index fell 2.1%. Other stock market indices remained almost unchanged. Investors still believe the recent expansion of monthly ECB bond-buying programme from 60bn to 80bn euros will improve substantially the financial performance of the companies. The economic data released on Tuesday were neutral. The March manufacturing PMI rose slightly in Eurozone but fell in Germany. The German IFO Business Climate Index edged up while the Economic Sentiment decreased. Till the end of March no significant economic data are expected in EU except for the consumer confidence index in Eurozone on Wednesday and the ECB economic report on Thursday this week.
Indices_EU
On the daily chart Indices_EU: D1 is in uptrend and has come close to its lower boundary. The prices rose by 15% from the low of August 2013 hit in early February. In the recent two weeks the personal composite instrument has been traded in a narrow range of sideways movement and has approached the support of the uptrend. The MACD and Parabolic indicators give sell signals. RSI is descending and has formed the modest negative divergence. The Bollinger bands have contracted which means lower volatility. The bearish momentum may develop in case the chart Indices_EU falls below the last fractal low, first Fibonacci retracement level and support of the ascending channel at 7869. This level may serve the point of entry. The initial risk-limit may be placed above the Parabolic signal and the last fractal high at 8453. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 8153 without reaching the order at 7869, we recommend cancelling the position: the market sustains internal changes which were not taken into account.
Position Sell
Sell stop below 7869
Stop loss above 8153
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
AUD/USD defends 0.6400 after Chinese data dump
AUD/USD has found fresh buyers near 0.6400, hanging near YTD lows after strong China's Q1 GDP data. However, the further upside appears elusive amid weak Chinese activity data and sustained US Dollar demand. Focus shifts to US data, Fedspeak.
USD/JPY stands tall near multi-decade high near 154.50
USD/JPY keeps its range near multi-decade highs of 154.45 in the Asian session on Tuesday. The hawkish Fed expectations overshadow the BoJ's uncertain rate outlook and underpin the US Dollar at the Japanese Yen's expense. The pair stands resilient to the Japanese verbal intervention.
Gold: Buyers take a breather below $2,400 amid easing geopolitical tensions
Gold price is catching a breath below $2,400 in Asian trading on Tuesday, having risen over 1% in the US last session even on a solid US Retail Sales report, which powered the US Dollar through the roof. Easing Middle East geopolitical tensions and strong Chinese data could cap Gold's upside.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Israel-Iran military conflict views and takeaways
Iran's retaliatory strike on Israel is an escalation of Middle East tensions, but not necessarily a pre-cursor to broader regional conflict. Events over the past few weeks in the Middle East, more specifically this past weekend, reinforce that the global geopolitical landscape remains tense.