What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
European Stock market might crash soon
Information is not investment advice
In today's article, we will be performing an interesting analytical experiment - Correlation!
To start, I have chosen a few indices that we will be observing. It's just like we're analyzing the flavors of different ice creams and predicting which ones will sell better based on their ingredients. In this case, the price action is the component we will adopt in order to determine the outcome. So, let's dive into the price action!
UK100
First on my list is UK100, and I'll be working on the Daily timeframe. Here we see price currently at a strong pivot zone acting as a resistance. The 100-Day MA also overlaps with this zone and adds extra confirmation to the possibility of a bearish rejection from the supply zone. The primary target would be the 200-Day MA. You notice the stochastics seems overbought too right? Cheers!
Analysts’ Expectations:
Direction: Bearish
Target: 7440.00
Invalidation: 7708.97
EU50
EU50 has created a classic AMD (Accumulation-Manipulation-Distribution) pattern. There has also been a break of the trendline that would act as the pivot in this case; thus making the current bullish move a mere retracement. There is also the confluence of the 88% Fibonacci retracement level, which leads me to believe that price may seek to return to the lower trendline for support.
Analysts’ Expectations:
Direction: Bearish
Target: 4082.5
Invalidation: 4342.30
DE30
EU50 and DE30 seem to be members of the same book club. Do you see the resemblance in the price action? We have the same AMD pattern, the same Fibonacci retracement level, and the same trendline situation going on. All these simply affirm the likelihood of bearish price action in a short while.
Analysts’ Expectations:
Direction: Bearish
Target: 4084.63
Invalidation: 4337.94
FR40
Alas! The book club has one more member here. The price action on FR40 at this point really needs not much explanation; in fact, you could simply refer to the analysis for EU50 or DE30, and you'd still be on point.
Analysts’ Expectations:
Direction: Bearish
Target: 6951.54
Invalidation: 7426.28
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
Legal disclaimer: The content of this material is a marketing communication, and not independent investment advice or research. The material is provided as general market information and/or market commentary. Nothing in this material is or should be considered to be legal, financial, investment or other advice on which reliance should be placed. No opinion included in the material constitutes a recommendation by Tradestone Ltd or the author that any particular investment security, transaction or investment strategy is suitable for any specific person. All information is indicative and subject to change without notice and may be out of date at any given time. Neither Tradestone Ltd nor the author of this material shall be responsible for any loss you may incur, either directly or indirectly, arising from any investment based on any information contained herein. You should always seek independent advice suitable to your needs.
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