European markets are trading lower, following the Asian session negativity after North Korea missiles launched last night. The French CAC and the German DAX brokeout below the SMA200 and downward movements are likely to continue.
Expectations for the start of the US Session are negative, and we can expect further declines when liquidity rises with the start of the stock exchange session at 16:30 GMT+3.
In the current situation, we will also watch the Military Industry sector, where demand will increase. Companies with potential for increase are: Lockheed Martin (LMT), HUNTINGTON INGALLS IND INC (HII), ELBIT SYSTEMS LTD (ESLT).
We are currently watching corrections by gold, silver, JPY and CHF that will give us appropriate levels for new entries. We will look for profits and short positions, especially by USDJPY, USDCHF, AUDJPY, AUDCHF, NZDJPY and NZDCHF after every correction. A price near 1310 by GOLD will give us potential for new purchases and the likelihood of a new upward impulse is high.
The most traded EURUSD pair is currently pulling back, most likely due to profits taking from short-term long positions, and after the opening of the US markets we can expect a new upward momentum. Levels suitable for positioning will be 1.20 - 1.1980 with stop 1.19.
Trader Nikolay Georgiev
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