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Market View

Profit-Taking...?

Monday, May 11, 2020 4:54 PM GMT

Most probably, Traders have started profit-taking after the market’s recovery. Nasdaq has already recovered more than 80% from lows while SPX500 performed almost full recovery before today’s decline. Analysts are hoping for a V-shaped recovery however this is not something easy to be done. Many EU countries have loosened their lockdown restrictions and are gradually trying to get back to normal conditions. More than half of the states in the US have started reopening their businesses as Trump applies pressure towards this direction. 

Reviewing the technicals, SPX500 retraced back to the major and psychological support of 2900. NAS100 holds above highs of 30/4 and creates a short-term bottom. GER30 closed the open gap and bounced on the 50% Fibonacci level.  

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SPX500 hourly chart

NAS100 hourly chart

GER30 hourly chart

Heading to the forex market, EURUSD is obviously consolidating and 20EMA remains a point of reference for the buyers. GBPUSD is trapped between 20EMA and 50SMA. As long as cable remains above 50SMA, the mid-term trend remains positive, however, traders should pay attention to the trendline. USDJPY performed a bullish breakout and is heading towards the 50SMA and 61.8% Fibonacci level.

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EURUSD daily chart

GBPUSD daily  chart

USDJPY daily chart

Checking the ZuluTrade’s Traders Sentiment, the community is buying EURUSD, GBPUSD, and USDCAD while is selling USDCHF.

In focus this week (economic calendar):

UnitedStates - Consumer Price Index ex Food & Energy (YoY) (Apr)
Australia - Wage Price Index (QoQ) (Q1)
NewZealand - RBNZ Interest Rate Decision
UnitedKingdom - Gross Domestic Product (MoM) (Mar)
Australia - Unemployment Rate s.a. (Apr)
Germany - Harmonized Index of Consumer Prices (YoY) (Apr)
UnitedStates - Initial Jobless Claims
EuropeanMonetaryUnion - Gross Domestic Product s.a. (YoY) (Q1)
UnitedStates - Retail Sales Control Group (Apr)

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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