There is summer slackness on markets. Seemingly… But one should look at the active trading of petroleum and stock indexes, to understand that the slackness does not exist on all markets. As far as the petroleum is concerned, it is growing well and overcame the resistance of 99 -100 (the brand in question is Brent), from the rebound that made it possible to buy. Currently the obstacle for further development is a level of 106-107 $ for one barrel, which would be nice for consolidation to calm down the bears and continue the growth.
There are no reasons for petroleum not to grow. The reserves of oil and gasoline are falling in the USA, the correction of all Arabic crises has come to an end, the heating season is approaching and world economy is increasing and it still needs fuel for functioning. There is a high demand for petroleum and with a growing share market it must increase. That is why purchasing is well grounded both technically and fundamentally. However, those who are not in long yet should wait approaching the level of 106-107 and a price behavior at a given level.
Last week was characterized by narrow trading bands with European currency, both euro and pound sterling.
If plateauing of GBPUSD pair with growing market may be explained by bad news about maintenance of current unemployment rate of 4.9%, with existing negative profitability (which means an absolute confidence of the investor in paying capacity of the issuer, since future obligations are bought at premium) for recently scattered stocks of Germany the decrease of euro does not seem logical.
Based on this it is recommended to give up for some time a fundamental analysis of euro and to use only instruments of technical analysis. And one should wait for a breakdown of resistance level 1.2320 from technical analysis for purchases.Social button for Joomla