Stock Tumble on Risk Aversion Today - Forex News by FX Leaders
Let's hope the pullback in stocks ends here

Stock Tumble on Risk Aversion Today

Posted Thursday, July 30, 2020 by
Skerdian Meta • 1 min read

Stock markets have been bullish since the middle of March, following the crash earlier that month, as markets panicked on coronavirus spread in Europe and the US. We have seen some decent pullbacks, particularly at the beginning of June and the beginning of July.

But those pullbacks eventually ended and the bullish trend resumed again, making new highs. DAX almost claimed all the losses from that big crash, remaining bullish until themiddle of last week. But, every bullish trend need a refreshing now and again, so stock markets have pulled lower for more than a week.

DAX retreated lower, but it was finding support at the 20 SMA (grey) on the daily chart, as show above. We decided to buy this pullback in DAX, but we see that today, the miss in earnings from Renault and Volkswagen turned the sentiment negative again. So, stck markets and DAX slipped lower, breaking below the 20 daily SMA.

But, we decided to open another buy signal, this time in Nikkei, since the pullback seems like a good opportunity in this larger bullish trend. The US government should pass another fiscal stimulus bill this week/weekend, which will improve the sentiment again, so we are waiting for that package to make us some good pips.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
BOE governor Baily, said earlier that negative rates are there, but not to touch them
1 hour ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of