Europe Defends Supports

Stock traders fight bravely to keep the bullish sentiment alive. In Europe, a defense is not happening in a random place. Both FTSE and DAX are protecting ultra important horizontal supports, 7100 and 11900 points respectively. FTSE did a good job but the situation on the DAX looks slightly better from the technical point of view. In addition to the defense of the crucial support, we do have a bullish engulfing candlestick pattern here which only strengthens the buy signal.

Something from the Forex market – GBPJPY. The pair is moving very technical and on a daily chart, we do have a nice sell signal. First, we broke the lower line of the wedge and the horizontal support and now, we are using this support as a resistance. What is important, is that we are seeing a bearish reaction here, which increases bearish hopes for a bigger drop. The potential target is 700 pips lower!

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis