Markets slipped on Wednesday, weighed down by defensive sectors, as investors remained cautious about a surge in the number of global coronavirus cases.
The pan-European STOXX 600 , which had closed at a near two-week high in the previous session, slid 0.5%, with food and beverage, telecoms, and healthcare stocks falling between 0.7% and 0.8%.
Many U.S. states have reported record daily increases in COVID-19 infections in recent weeks. A media report that European Union countries are prepared to bar entry to Americans also raised worries of further restrictions that could derail an economic recovery.
Today's session could be good for dip buyers
Bias points to an eventual push to the 1.1422 June highs
However, a sharp two-day climb Mon-Tues needs adjusting
Long upper shadows on the Jun 16 and 23 hint at supply points
Offers to the mid-1.13s just taking the heat out of the current rally
Dollar also trying to find its feet after sharp two-day losses
German virus situation a concern but EZ recovery hopes boosted by PMIs
The EURUSD drop from 6/10 is left in 3 waves. The ‘best’ near term count at this point treats the drop from 6/10 as a 4th wave, in part because the proposed 4th wave decline retraced 38.2% of proposed wave 3! The implication is that EURUSD trades to a new high in larger wave 5 within the cycle from the 4/24 low. Ideal support now is 1.1237/41. This is the 61.8% retrace of the rally from Friday’s low and the 6/9 low. If this plays out, then waves 1 and 5 would be equal at 1.1460.