U.S. indexes closed near to zero points as investors need time to absorb the growth of the month. Meanwhile S&P has grown for 75 points and is on its all-time high. Investors expect the New Houses Sales data and also the Customer Sentiments Index. These news may cause the further movement.
Traders managed to hold up a small growth in Asia caused by positive data on sales of Existing Houses in the United States. European indexes opened up higher in advance of data release from Germany. Traders keep observing the situation in Iraq and Ukraine. After two months of fighting in the Eastern Ukraine, the separatist leaders have agreed to stop the fire with the government forces until June 27. President Poroshenko announced the truce as part of a plan to end the insurgency on Friday.
There is a well-known “h”-pattern in the German DAX. June 19 Index opened up with a gap up and formed an upper-base with a support of 10.000. After the short-term penetration of the previous high of 10.033, the price has fallen, broken the support and totally overlaped the gap — that speaks for a short-term buyers’ weekness. After the roll back to key moving avarages Index is curling down. I like the idea of Put option if we consider all the world’s geopolitical instability. The resistance is around 9.960-9.970. Breakthrough of the local bottom of 9,887 can lead to a continuation to the medium-term support zone of 9.829-9.862. On the daily chart the index is still very strong and is trading around 8/21 EMA. I do not think that there is the high, but maybe we'll see the rollback to 50 EMA 9,780 earlier than the breakout upwards.
Most of the currancy pairs either already made a better predictable movement or they are preparing trading in a consolidation. EUR/USD seems to be ready to grow. First, the pair found the support of 1.35200 which was valid for six sessions, then resistance at 1.35800 was punctured and after a brief consolidation above the price (which means that traders have adopted new levels) and caught the wave of purchases, then rose to 1.36400. After such a great movement market went into a wide consolidation — an indefinite zone that was resolved this day. If buyers can hold up a big share of present growth, then we may see a continuation of movement to highs of 1.36330-1.36400. My support rates of 1.36090 (8 EMA), 1.36030 (21 EMA), 1.36123 (previous top).
Gold has broken the consolidation. Buyers managed to hold up ⅓ of the growth which speaks of their strength. The jump off and trade above the support rate of $1306.5 (38% Fibonacci) were good clues that this penetration will not take long. Starting point will now be $1.322 the previous rally. Trading and an adoption of prices may give an opportunity for active traders to keep buying.
There are the Facebook quotes that deserv attention on the U.S. market. The price is building the base above 8/21 EMA. Sellers tried to push the price on Friday, but buyers seized the initiative and kept $63.35 (21 EMA). Shares showed a relative strength yesterday, kept growing and closed in front of the resistance of $65.70-$66.00. It’s breakthrough may attract even more purchases. Other shares of this sector (Twitter, LinkedIn, Yelp) are also doing great and slowly growing.
The best results in the Financial Sector represent Wells Fargo, Morgan Stanley and JP Morgan Chase.