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PMI Come as a Nice Bullish Gift

Tomasz Wiśniewski

Tuesday brings us pretty solid PMI numbers from Europe. This is definitely supporting buyers and is actually serving as an ignition point for a new bullish wave for the global stocks. We’re not surprised as we predicted this probability in yesterday’s analyses.

Let’s start with the DAX which is pushing forward after a false bearish breakout from the first trading day of this week. The decisive rise during the European morning broke the upper line of the range. That finished the correction and in theory, opened the doors for an attack on mid-term highs. Sentiment is definitely positive.

Next the EURUSD, which we also analyzed yesterday. We said that the head and shoulders pattern is off the table with the entrance of the wedge. Once again, we’re not surprised, when yesterday evening the price broke the upper line of the wedge and went higher triggering a buy signal. Sentiment for the pair is positive.

Lastly a small update on Brent Oil, which is heading higher. Global demand seems to be rising and that is helping the price of the crude Oil. Tuesday brings us a breakout of the 42.8 USD/bbl. and new highs in June. As long as the price stays above the long-term up-trendline, sentiment is positive.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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