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S&P 500 And 2 Currency Pairs Breaking Above Crucial Resistance Lines

ByAxiory
AuthorTomasz Wisniewski
Published 05/27/2020, 07:42 AM
Updated 01/03/2021, 09:10 AM

And here we are, as far as indices go, we are on the highest levels during the corona-crash recovery. Traders are extremely optimistic; bears have to abandon their negative view and buyers are enjoying still relatively discounted stocks. Is this optimism irrational? Is it exaggerated? Well, maybe but we said it already and we will say it again: do not look for logic on the market and do not assume that the stock market should closely reflect the status of the economy.

The S&P 500 broke the crucial resistance at the 2980 level and the psychological barrier at 3000 points. That is not enough for the buyers and they are still pushing the price higher and higher. As long as the price stays above 2980 points, the sentiment is positive.

Optimism can be clearly seen on the Forex market, where emerging markets’ currencies are nicely gaining traction. An outstanding move could be seen on the EUR/PLN, where the price broke the lower line of the symmetric triangle pattern and further, the 4,51 support level. That removed the brakes and the price collapsed aiming at the crucial support of 4,40. 4,40, it looks extremely strong as it was the crucial resistance in 2018 and 2019. The first contact with this area gives a handsome hammer.

Here is a small update on the NZD/USD: we mentioned this instrument in one of our previous analysis and we were bullish, pointing out the good-looking flag pattern. The price indeed broke the upper line of the flag and went higher crashing through the horizontal resistance at 0.616. As long as the price stays above that resistance, the sentiment is positive.

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