Rapid Reversal on Indices

Rapid Reversal on Indices
Yesterday's European session on the indices started off poorly, with the German DAX breaking a key mid-term support level at 15250 points and American futures hitting new yearly lows. However, sentiment rapidly changed and indices reversed in a V-shape manner. By the end of the American session, indices were racing to see which one would close higher as sellers completely abandoned their positions.
DAX managed to create a beautiful hammer on a daily chart at a key support level, which is bullish. SP500 also created a nice bullish candle, which may be the start of a new correction aiming north. Dow Jones confirmed support at 32500, which is currently a key horizontal level for this instrument. If Friday on indices is also bullish, the whole week would be optimistic and give a buy signal for the entire month of March.

On the currency market, we saw the USD gain yesterday but start Friday weak again. The Euro saw losses despite hawkish comments from Christine Lagarde and inflation data that dropped but still came in higher than expected.
Commodities are looking strong again, with Gold climbing higher almost every minute of Friday's trading. Oil is also showing signs of optimism, but it is currently trading on the major down trendline, so buyers would need much more momentum to initiate a breakout. The next few days will be crucial for the mid-term situation in Oil.

Today's calendar is filled with Services PMIs from almost all leading economies in the world. We already saw the Caixin Services PMI from China, and the actual reading beat the estimates at 55 versus 54.3.
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.