On Monday, markets started the week with a complete risk-off day. There were no important economic data in Europe, but that didn’t prevent a new down leg of most European assets. In particular the EMU equity markets were hit hard.
- Latest wave of downbeat news weighs on risk correlated assets
- Markets however still largely locked in some consolidation
- We remain upbeat and still look for Euro rally before weakness
- Oil chart looking highly compelling; could be buy opportunity soon
Today's support: - 1.2462 and 1.2453(main), where correction is possible. Break would give 1.2439, where correction also may be. Then follows 1.2420. Break of the latter would result in 1.2402. If a strong impulse, we would see 1.2375. Continuation will give 1.2354.
And we thought last week was going to be a specifically difficult week to get a handle on things? This market is already beginning to feel like it wants to throw another major wobbly now that the single currency has managed to register a cent decline since Sunday’s open.
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