Who would have thought that after the vaccine news from Pfizer, attractions on the market will last only for a while. After the initial upswing, the market entered a sideways trend, which lets say…is a little bit boring. Worry no more though, we have it covered and we are presenting you three very promising trading setups on different types of instruments.
First, an index – German DAX. Here, the price managed to break the dynamic resistance connecting recent lower highs. That was very positive but after that, the price created a pennant formation, which basically is a flat correction. In theory, this should end with the breakout to the upside but buyers need to be cautious. The price breaking the lower line of this formation will be negative and can bring us a sell signal but this option is currently less likely to happen.
From indices we move to currencies, where we will analyze the Dollar Index. DXY is in a very important place – long term horizontal support on 92.2. We already tested it a few times but sellers are not giving up and pressure arrises. Price closing a day below 92.2 will be a proper, long-term sell signal.
From currencies, we move to commodities, where I would like to show you Platinum, the price is testing crucial dynamic resistance. Sentiment is positive, as the price already broke important horizontal resistance, on Monday. Price closing a day above the red line, will be a proper buy signal.
For a look at all of today’s economic events, check out our economic calendar.