Long Live the Markets Rally

Perhaps last Friday was an important markets threshold, demonstrating the dominance of bullish sentiment.
Alexander Kuptsikevich
Bull charts Rally

The key currency market pair, EURUSD, once again received support at 1.130, and the most tracked index of stock markets, S&P500, broke above the 200-day moving average, rising by 1.5% before the long holidays.

Strong movement from a key level often acts as an important signal for the markets and is rarely accidental. Quite the opposite, many large players regard it as a signal of further movement towards a strong breakthrough.

For the EURUSD, a sharp reversal to growth on Friday, when the pair was quickly bought out after the decline to 1.1235, is an important signal of the players’ readiness to stay within the side trend 1.13-1.15 for some time. Important to note that EURUSD has remained in this range since the end of October, that is, almost 4 months!

EURUSD Daily Chart

The S&P 500 is a different story, but with the same general message of market positive. The index showed growth after the Christmas holidays at the end of the year and lost momentum on the previous week close to 200-day moving average. This is the most important technical level for large players. The decline below has strengthened sales at the end of the year. It is possible that move above could have the opposite effect: players will rush to buy shares, making sure that optimism prevails on the markets.

SPX Daily Chart

It is equally important that a breakthrough up occurred before a long weekend, because often the markets, on the contrary, behave more carefully.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.