Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

What To Expect Today: DAX, Dow, USD/PLN

ByAlpari Research & Analysis
AuthorTomasz Wisniewski
Published 03/25/2020, 05:43 AM

Yesterday morning, we recorded a video analysis, where we were informing you about the potential buy signal on the DAX, coming from the breakout of the neckline of the inverse head and shoulders pattern. The price broke the neckline, went higher and the DAX saw one of its best days on record. We can’t say we’re surprised.

Wednesday on the European Market started with a small pullback but I guess it’s normal after an upswing like that. The DAX is close to the 10200 points so a 38,2% Fibonacci retracement of the corona-crash. I think that they will not waste this great occasion to test this resistance. In my opinion, the future of this instrument depends on what will happen there. A strong reversal can easily end this relief rally but on the other hand, a breakout should attract bulls, looking for bargains on the discounted market.

Can we spot a similar situation in the US? We most definitely can but the scale of the reversal is lower. The Dow Jones also created an inverse head and shoulders pattern and broke the neckline. The thing is that the momentum is not so significant as with its German counterpart. Americans, so far, retraced only slightly more than 23,6% of the corona-crash. A 38.2% line is still far. Nevertheless, as long as we stay above the neckline, the mid-term sentiment remains positive.

Let’s check the sentiment towards the emerging market currencies. I will use the USD/PLN as an example. We can see that sentiment here warms along with the one on the stock market. USD/PLN stopped this crazy upswing on its 2016 highs. On the hourly chart, the price is creating a head and shoulders pattern and is trying to break the neckline as we speak. A successful breakout can bring us to areas around 4.12.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.