After a bloodbath in US indices on Wednesday, we’ve seen some modest calming of conditions, with the focus on the US500 and whether we could break 3853 – the level which takes the US500 index 20% from its 4 Jan high and into a textbook “bear market”. Consider the average drawdown from its 52-week high in the US500 is 25%, so we can see the index move masks some of...
Rectangle patterns usually act as continuation patterns – as we see on the 4H timeframe, on 12 May we saw EURUSD break out of the ranging rectangle pattern and fell to the big monthly 1.0350 support level (and 2017 low of 1.0341) before finding demand there. With price currently pushing for a re-test for the breakout zone, could a rejection of 1.05 to set the pair...
The tides in FX are turning and after a period where the JPY was smashed on a central bank divergence thematic, some are now seeing ‘value’ and buying JPY, others covering JPY shorts.
With implied vol high across asset classes and traders question the prospects of stagflation and recessionary risk, relative interest rate settings, and carry, are having less of...
