Market Wakes Up After Easter and Already Has Few Nice Setups

We are back after the Easter break and the sentiment is definitely positive. Traders are talking more and more about lifting some crucial parts of the lockdowns and are looking on global recovery with hope and optimism. The big story over the weekend was Oil with its OPEC meeting but traders don’t seem amazed and the price is currently flirting with the local bottom.

Let’s start with the Dow Jones, where traders are in a good mood and the price is close to its mid-term high. Here, we are still in the wedge, which is a trend continuation pattern, so it still promotes the second leg down. Following a drop below the 38,2% Fibonacci retracement level the price has dropped even further below the important Fibonacci resistance level of 50%. This can be a good occasion to go short but to be honest with you, indices are climbing higher and higher, breaking one resistance after the other. Furthermore, buyers here are supported by the FED and other Central Banks with their unlimited printing capabilities. It’s never been a smart move to go against the FED, and this continues to be the case here.

A small update about the USDCAD, which was mentioned last week; the price was in the ascending triangle pattern and we were waiting for the breakout. The price went into a downside breakout, giving a sell signal. As long as the price remains below the 1.393 level, the sentiment remains negative.

We’ve mentioned the EURPLN a couple of times, which may be an exotic pair but it sure is technical. If you’ve been following us for some time, you should remember that we had a big inverse head and shoulders pattern at the end of February which gave a strong buy signal. The price is now in a symmetric triangle pattern and we are waiting for the breakout. The price smashing the upper line of the triangle will give us a signal to buy while a breakout of the support, will give us a signal to sell.