NY session fightback sets up further buying

กุมภาพันธ์ 19, 2020
by Joseph Jeffriess, Market Analyst

Buyers continue on after a late NY session fightback on indexes and FX

Last night’s NY session produced an interesting turn around after what was a day mainly filled with worry and moves back to safe havens.

Looking at U.S. indexes we saw a strong return from buyers on the NDX100 (CFD Index), buyers not only reversed the losses but closed out the session with a gain. The US30 closed with the heaviest selling despite a good attempt from buyers. This momentum has carried over into today’s session with the ASX200 JPN225 and  HK50 all posted stronger sessions.

Risk currencies have also seen demand during today’s Asian session the AUD and EUR moving higher, with the best gains so far to the JPY. Gold was another big mover last night adding 1.09%, today’s trade has been a fair bit quieter. Coronavirus continues to pull and push liquidity in classes, yesterday’s falls were due to a jump in cases and today’s recovery looks to be a discounting of the severity.

Heading to the European open, futures are holding gains at this stage, the DAX +0.33% The FTSE +0.33% and the CAC 0.25%

A few Chart patterns we’re watching on indices atm;

JPN225 D1 – Price has started to form an inverse head and shoulders, the current shoulder has also formed a new Higher Low. Both patterns can suggest buyers are building momentum but we would like to see a close above 23475 to show some confirmation.

NDX100 D1 – last night buyers rejected sellers setting up a failed low, today buyers remain interested with a small out of hours rally making a mini-break. We would like to see buyers complete a new break by closing above the last all-time high to set up a completed breakout. This would show solid short-term momentum on the buyer’s side. A fail around this area with new move lower points to further time in consolidation.

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