European Market

The index started the week with a relief rally and this gives it the opportunity to close it with profits, despite its lackluster performance during its second half

In our estimate, the DAX weekly is now at a critical juncture in terms of this week's price action. The candlestick of two weeks back is a long red candlestick down (aqua arrow). The range of the candle shows the fearsome selloff as news of the omicron variant emerged. However, last week, the DAX settled and a spinning top was charted. This is a candle of uncertainty, with neither the…

Weekly Chart Using 19 July as a starting reference, the UK100 has charted a higher trough followed by a higher peak. This is an uptrend. Last week's candle is setting up to potentially be the next higher trough in the series (HT?). If this week's candle closes above last week's high (aqua horizontal), the higher trough will be confirmed. This will create a platform for the UK100 to chart the…

Weekly Chart The DAX sold down heavily during the week ending 26 November. Last week was defined by uncertainty and a spinning top charted – bulls tried to take price higher, bears tried to take price lower, but the market closed relatively flat. Participants pay close attention to the 14,900 area, which is an identified area of support. Last week's candle (aqua arrow) is the lowest candle in a three-candle…

Weekly Chart Further to our previous article, the GER30 charted a lower low this week at support (blue shaded horizontal). Since hitting this level, bulls have attempted to push the price higher, and the current action is off the low for the week. This has set up a potential swing low. However, for this to take place, short-term candles will need to chart a higher low and close above this…

GER30 Big Weekly Drop Last week the GER30, FXCM's proxy for the DAX30, dropped 6.4% from open to close. The coronavirus spread in Europe initially rattled the market. However, it was confirmation of a new strain that was the catalyst for the decline. First referred to as "Nu" but amended to "Omicron" by the WHO, research is currently being conducted on the new strain, with evidence suggesting a risk of…

The GER30 gapped down on open today, as a risk-off sentiment prevails. The catalyst is covid-19 developments. In Europe, countries are starting to reintroduce restrictions to deal with rising infections. On Wednesday, Italy announced new Covid measures, and Germany narrowly avoided another lockdown, preferring to see if stricter Covid passport rules help alleviate the situation. Moreover, concerns over a new Covid variant have added to the fears. The B.1.1.529, or…

The Primary Trend The EURUSD monthly below (chart 1) has charted a lower peak followed by a lower trough - the classical definition of a downtrend. Due to the longer time scale, the primary trend for EURUSD is down. Until there is a change in the pair's primary trend, impulse moves down will be stronger than corrective moves up on the lower time frames. The stochastic is heading towards the…