European shares opened without clear direction on Friday as market sentiment remains mixed for the end of the week. Despite a strong optimistic tone registered in June, investors’ risk appetite is now tempered by a renewed momentum in daily virus cases in many areas, as well as rising trade tensions between Washington and the EU.
While traders don’t expect any significant macro data today, volatile and sharp price action may still take place in the afternoon as investors could be tempted to reduce their exposure to riskier assets ahead of the weekend. The technical configuration in Europe isn’t too worrying but does not encourage traders to go long on the short- to mid-term view.
The Stoxx-50 index is trading in the middle of its bullish channel, slowly flirting with the 3,250 pts zone. The presence of multiple doji candles in this zone combined with an RS Indicator showing a trend break-out slightly above the 50% zone, means the market loses momentum and remains hesitant to register higher levels, increasing the likelihood of a correction.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
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