Stock traders are fighting bravely to keep the bullish sentiment alive. In Europe, this defence is not happening in a random place. Both FTSE and DAX are protecting ultra-important horizontal supports, at 7,100 and 11,900 points respectively. FTSE did a good job, but the situation on the DAX looks slightly better from a technical point of view. In addition to the defence of the crucial support, we have a bullish engulfing candlestick pattern here, which only strengthens the buy signal.
Something from the Forex market - GBPJPY. The pair is moving very technically, and on the daily chart, we have a nice sell signal. First, we broke the lower line of the wedge and the horizontal support and now, we are using this support as a resistance. What’s important is that we are seeing a bearish reaction here, which increases bearish hopes of a bigger drop. The potential target is 700 pips lower!