Lack of market trends (trading range) and the uncertainty regarding the development of fundamental processes determine the critical technical picture, which is currently playing a key role in the decisions of the players. In the U.S. corporate reporting season began, so this fact is central to the focus of the market. During the afternoon schedule of broad market index S & P 500 looms turning figure head and shoulders ", which threatens the upward momentum since the 10 March this year. "Line of neck 'prices remained on Tuesday July 7. And the next day (Wednesday) during the regular trading session on Wall Street was an attempt to break the 200-day moving average line. At the same time, the pair euro / dollar going lower boundary of Perforation converging isosceles triangle. Emerging at that time the technical picture is so clearly indicates a high probability of strengthening the dollar, and a renewed decline of American stocks, and many of the players to react to it by their trading decisions.
However, as the result of the completion of trades for Wall Street on Wednesday to break the 200-day moving average on the afternoon schedule S & P 500 failed. Frustration led to significantly reduce the volume of players long on the dollar, which continues to serve as an asset of the security zone (in a time of growing appetite for risk the players are looking for possible purchases of shares by choosing markets that can potentially provide higher returns in the period of financial turmoil and uncertainty of demand on U.S. Treasury bonds). On Thursday, this disappointment was enhanced trigger protective orders to buy, with the result that the dollar has dropped in price to the euro. Rate This pair of currencies has risen in the area of 1.4075/70.
In other words, the correction in the market prevailed. This forced, because while the S & P 500 remains below the level of 900 points, which is lower than the current values of the line neck shape potential "head and shoulders," Euro / dollar remains the chances of testing the lower boundary of this range (1.3750 area) and has the potential to achieve its 200-day average value of 1.3315/25.
However, as the result of the completion of trades for Wall Street on Wednesday to break the 200-day moving average on the afternoon schedule S & P 500 failed. Frustration led to significantly reduce the volume of players long on the dollar, which continues to serve as an asset of the security zone (in a time of growing appetite for risk the players are looking for possible purchases of shares by choosing markets that can potentially provide higher returns in the period of financial turmoil and uncertainty of demand on U.S. Treasury bonds). On Thursday, this disappointment was enhanced trigger protective orders to buy, with the result that the dollar has dropped in price to the euro. Rate This pair of currencies has risen in the area of 1.4075/70.
In other words, the correction in the market prevailed. This forced, because while the S & P 500 remains below the level of 900 points, which is lower than the current values of the line neck shape potential "head and shoulders," Euro / dollar remains the chances of testing the lower boundary of this range (1.3750 area) and has the potential to achieve its 200-day average value of 1.3315/25.
Mikhail Shulgin
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