Market Update - June 24

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.


Yesterday's free AUDUSD trading signal played out to the pip. Hope you guys took that opportunity.


EURUSD


  • 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.


Good Trading,

Dom

Dominik Stone

Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Dominik Stone, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

© 2020 Copyright Dominik Stone International. All rights reserved.