Tuesday, May 8, 2012

Market overview 8.5.2012

Market rebounded yesterday as planned. Money flow is still positive, so there are chances for higher high. All the indicators are currently down and possible bottom could be near.

In a technical perspective Dax is in a longer term uptrend and tested the rising trend line. It rose back above it's Fibonacci 6544, which has many times proven to be very important technical level.

It also seems that Hang Seng Index has very important key level at 20551, which is currently holding.

EUR-USD broke down 1.31 which it has been trying already quite a long time. Currently the fall of Euro is seemingly related to politics and especially the last weekend vote results from France and Greece. Falling to a lower levels near 1.25 is still possible even it started to look ugly for other assets as well.

AUD-JPY didn't yet break down below 81, thus indicating that riskier assets are still in favor and the latest drop was only temporarily.