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Time for a new Correction

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Hot Topics:

  • Is it time for a new Indexes’ correction?
  • US Dollar can’t continue its rally against their main pairs.

Is it time for a new Indexes’ correction?

The FTSE closed the session near our blue box, the area from which we expected that the price would make a corrective movement at least down to 7,326.  It could even be down to the 7,000 pts level.

 

The DAX closed the session testing the 12,622 resistance, failing once again in its attempt to strike the resistance. The pattern left at the end of the session looks like a double top pattern. If the price breaks down at 12,465.5, the target level will be 12,294.

US Dollar can’t continue its rally against their main pairs.

The Euro stopped its correction despite the positive economic data in the US. Consumer confidence increased in April, at the same time, the New Homes Sales (MoM) in the US advanced 4% in March, the highest level for four months. We think the corrective move in the Euro has paused, waiting for the ECB Monetary Policy decision. As long as the price moves below 1.2476, our bias remains bearish.

 

The pound has dropped below the psychological level of 1.40 and is now making a pullback looking to recover the previous zone. We will wait and expect the beginning of its next move to take a position in the GBPUSD pair. Our primary vision is that price could make new lower lows, to reach even below 1.37 level.

 

The CHF climbed up to the 0.98 level from where it has been rejected. It is likely that the Swiss currency makes a new high in 0.9825 before starting a bearish correction. The target is between the 0.965 and 0.9720 zone at least. The invalidation level of the current bullish cycle is 0.9577.

©Forex.Academy

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