Rotation ongoing amid increasing selling pressure

Frank Walbaum FX Strategies.Asia

Important news this week:

Tue -

Stock market rotation

Recent market data suggests that the correction in stock markets might continue. With markets in general not being able to create new highs they might also start to move lower. Recently only technology and software companies were trading weaker but now also the Dow Jones Industrial and the German DAX keep moving to the downside. Worth noting that also the AUD is currency trading at a major resistance area and the AUDUSD currency pair did print a bearish- looking pinbar candlestick based on the daily chart. Oil prices on the other had continue to trade high as geopolitical tensions still remain in focus. A potential attack on Iran might be of support, here.

Market talk

With the fade in risk sentiment also the crypto market remains under pressure. Yesterday, Bitcoin broke out of the triangle pattern as observed on the daily chart and might now fall below the USD 60,000 price level. Altcoins follow the same path. They would also need a rebound in BTC in order to push higher again. Gold, on the other hand, might continue the positive trend. The market is retracing today but looks extremely positive as investors favour safe- haven assets during times of uncertainty. The JPY remains in a sideways trend without much momentum for now.

Tendencies in the markets

Equities weaker, USD positive, crypto weaker, oil sideways, Silver positive, Gold positive.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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