A decent start into the US earnings season and renewed optimism about the on-going trade talks between the US and China have helped stock markets to regain momentum. The DAX cleared a major level of resistance at 12.000 points. DAX bulls are now looking at 12.314 points as next target, which is the 61.8 % Fibo of the 2018 decline. However, the upcoming exchange holidays and concerns about an economic slowdown in Europe might cause some headwind in the short-term.
Risk appetite in the markets has been rising in recent weeks, and the demand for Gold dropped accordingly. Resistance at the falling trendline from the February high proved to be too strong, and Gold bulls may be in trouble if the precious metal falls below $1280 - a key level of support. The next notable area of support would then lie around $1250, which is currently close to the 200 DMA.
While the Dollar rally has lost some of its momentum recently, USD/JPY is not showing any signs of weakness yet. It managed to close the previous trading week above the 200 DMA, and is approaching the 76.8 % Fibo of the Oct ´18-Jan ´19 decline. A clear break above this level may be seen as a bullish signal by the market. Furthermore, the RSI is not yet in overbought conditions.
EUR/CHF is not the favourite pair for traders looking for big price swings. However, even this currency pair occasionally sees periods of higher volatility. After an almost 200 pips rally, it is now approaching a key trendline resistance and the 200 DMA - which both lie between 1.1350 and 1.1370. The market is now waiting to see if EUR/CHF can clear this area of heavy resistance or if the consolidation will continue.
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Soaring US yields trigger the wrecking ball effect as yields become a source of volatility for risk, rather than a source of support