Fundamental Help From Mnuchin Triggers Technical Buy Signal
Alpari Research & Analysis | Jun 26, 2019 06:36AM ET
Markets do not really care about the situation in the Gulf region. The main drivers for the stocks and currencies are now the Trade Wars and the dovish FED. A great example of this we had today when Treasury Secretary Mnuchin said that US-China deal is 90% ready. This and only this was enough for the major global indices to climb higher.
Fundamental help from Mr. Mnuchin came on DAX in a very appropriate place. DAX was testing the horizontal support and the lower line of the channel up formation. As we can see, the test is bullish and looks like a good warm up before another attack on the new long-term highs.
The moment was also good for the FTSE. Thanks to the news from the White House, British index went higher breaking the upper line of the flag. That breakout was widely expected and of course, gives us a legitimate buy signal.
Last but not least is the EUR/USD, where we finally have a correction. USD is a bit stronger but that does not mean anything, just a normal take profit action. Technically, pair is testing the neckline of the Inverse Head and shoulders pattern. Price started to make higher highs and lows, which promotes further rise.
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