That is typical for the times, when market participants are selective with the news on the screen. Great trade balance data, awesome export in particular, triggered a full Risk ON mode on the market. This can be precisely seen on the indices and this is where we are going to start our short review.
S&P500 managed to fully use the ascending triangle pattern and broke its upper line. The breakout gives us a buy signal. The most probable movement right now is a small reversal but the long-term sentiment remains positive.
Next one is the DAX, which is also aiming higher. Here, the price defended the 23,6% Fibonacci and broke the upper line of the wedge. In addition to that, the price made an inverse head and shoulders pattern. Today we are trying to break the neckline and chances for the success are significant.
Next one is the USDJPY and we will mention this instrument because it’s correlation with the indices is usually very high. USDJPY is also climbing up and for that, used a nice wedge formation. The upswing is very strong and already managed to break the horizontal resistance on the 111.3 and the mid-term down trendline. With that, we do have a legitimate buy signal.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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