Brad Alexander
FX Large Limited
Last Friday we saw a mini-crash, or a correction, on the US indices as the DJIA broke out of this symmetrical pennant.
The reason for the fall was multifaceted and last time we drew attention to the PMIs in the US.
Between a bad US services PMI and orange tariff threats, investors got spooked.
So, do we want to buy the dip?
On the DJIA we see price action trying to rebound and the stochastic oscillator oversold and turning up.
On the S&P500, we see price action at the lower trend line but we will keep an eye on this possible rising wedge.
We are seeing the same bullish action on the NASDAQ but with the stochastic oscillator on the daily chart still looking bearish.
The German elections took place over the weekend and EUR shot up.
This gives us an opportunity to find counter-trend price action moves to allow us to enter a trade WITH the trend.
Like EURAUD where we have a downtrend and an overbought stochastic oscillator.
And, EURCHF on the hourly chart.
Before opening a position, investigate all your EUR pairs and look at price action and your technical indicators on all time frames.
Crude oil also fell last Friday and we see Brent Crude sitting at strong support and the stochastic oscillator oversold and turning up.
Wait for some confirmation before going long on Brent or WTI.
That’s all for now.
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While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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