DAX has violated its trend-line, and currently is creating a head and shoulders pattern. We expect it to retrace around 61.8%, where there is a resistance lvl.
We expect a huge sell-off. So, we open a short position with a very tight stop loss just above the shooting star candle (if we see a daily chart, we see a shooting star candlestick pattern very powerful reversal sign). The bulls trapped believing that it violated the previous consolidation zone.
That is a very good question regarding CAC40. The price gives us a bearish signal. As the price is around the resistance level which is also around 61.8% fib lvl of the original drop. Since the trend-line established Dec 2018 broken, we can consider this rising wedge as a correction. But what if it doesn't happen as we planned? The backup plan is also included.
In a daily chart, we see that the main trend-line has broken, and retesting it, as we analysed previously. In 4H chart, we see that the price tried to violate the resistance zone for 4 times, and eventually, broke the trend-line. So, we are expecting a drop.
In a bigger picture , WTI price is consolidating and is forming a triangle pattern. The triangle pattern has both reversal and continuation characteristics (mainly continuation, though). If equity market collapse, WTI will also plummet. In this case, the triangle will become the correction of previous drop, and our main target is around 28$. As the triangle hasn't...
NZD/USD tumbled more, as RBNZ cut its interest rate. So, we expect a measured move.