In today’s Market Outlook, let’s take a look at Forex Trading on the DAX40, the Hang Seng, the Dow Jones Industrial Average, and the NASDAQ.
Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.
We can see the volatility and turmoil in the US stock market with last week’s ruling by the Supreme Court of the United States.
The idea that the Trump global tariffs were illegally administered, as there was no national emergency, was good news for investors, and we can see buying after the announcement.
However, the games began just after that, with the White House applying 10%, then 15% tariffs.
Then, many other countries got publicly and vocally fed up with this, and investors bailed.
We see 3 of the indices trying to make a recovery, but that may have stalled, and the technicals agree with us.
The second reason leads us to look at the general fear of tech and software companies underperforming amid concerns over how artificial intelligence (AI) trends may disrupt certain industries, leading traders to trim exposure.
Thirdly, as we said, other countries are starting to respond to the rollercoaster US tariff policies, and other stock indices have fallen.
Here we see the Hang Seng, Hong Kong 50, opening with a gap to the downside, and the German DAX following almost the same path as the US Indices.
And, finally, when investors are spooked by uncertainty, they head for safe havens.
Of course, we are talking about Gold, which has flown up above $5,200 today.
USD is getting stronger, which always happens with a sell-off.
USD is especially strong against CAD, and we can see price action in an uptrend, with price action forming an ascending triangle with resistance at $1.37.
For you Fibonacci fans, you might like this one on cTrader’s Fib retracement graphic.
Find a swing high and a swing low, click and drag until you encompass the limits, and, ta-da, you can see that the current price is almost exactly at the 50% Fibonacci resistance level.
Here you may configure the Line colour, line thickness or line style if you wish.
So, we may just see USDCAD ranging between the 50% and the 38.2% Fib levels.
Or, if price action breaks above C$1.37, then the next level above is the 61.8% Fibonacci level.
That’s all for now.
CFDs and FX are leveraged products, and your capital may be at risk.
