Trading Insights: Bulls hold control, financial conditions remain “loose”
The above chart illustrates the relative performance of the US Chicago Fed National Financial Condition Index vs the S&P 500 index.
- When the Financial Conditions Index has a negative value it implies that financial conditions are looser than the average, which is deemed a positive indicator for the financial markets.
- Looser financial conditions imply macro-financial stability, hence increased investor confidence.
Bottom line: Traders and investors have at their disposal all the headline and alternative data they need to make more informed decisions. Take the time and do the work, you might discover your own high-conviction trading idea.
S&P 500 Index uptrend in play. This can be technically supported by the higher tops and higher bottoms price sequence observed on the daily chart.
The above chart illustrates the monthly-month price performance of the S&P 500 index.
Today’s economic calendar
German purchasing managers index (PMI) missed expectations, falling to 38.8. A reading below 50 suggests that the manufacturing sector is weakening.
Current EUR/USD 1.1080 down 40 pips so far today, the pair hit a high of 1.1275 last week; downside support spotted near 1.0930.
Source: TradingView / J. Knobel July 24 2023 7:50 AM UTC
Today’s Price Action Spotlight:
EUR/USD current price correcting lower after testing the key resistance near the 1.1275 area last week.
Upside prospects remain
EUR/USD current price 1.1082 seems to be correcting lower, reacting to the resistance of the 1.1275 level (see chart) after touching that level last week. Despite the recent pullback, the multi-month uptrend appears to be intact. Downside support spotted near the 1.0930s, while a move above the 1.1275 resistance could place the 1.14s in sight (see chart).
Do you have an opinion on where financial markets are heading? Express your opinion and trade with CFDs.
Not investment advice. Past performance does not guarantee or predict future performance.
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