Markets' pulse in front of the ECB meeting minutes

European indexes opened at higher levels from closing yesterday, but at the start of stock trading they made a slight downward impulse that filled the gap. Earlier PMI data in France, Germany and the Eurozone were mixed and interpreted by traders as good. It is noteworthy that Manufacturing PMI is below expectations, which may be an early signal of negativity over European stocks in the near future. It is considered that the manufacturing sector and the heavy industry are a leading indicator for banks and the direction of economic development. By this indicator, Europe is slowing down and this may signal us from early for a future negativity.

Currently, the positive expectations for a deal between the US and China are traded on the market. The reporting season is closing, with the largest companies already reporting on their financial performance. In Europe, some negativity is due to US President Donald Trump's comments on possible tariffs for carmakers. Banking sector has also been negatively affected by the latest disappointing reports.

The European indexes are approaching serious levels of resistance, with the French CAC shirking 200SMA on a daily chart. The probability of correction increases, but we can rather expect a little increase and test of resistance levels at DAX, then the price will adjust to the south.

A little later at 14:30 traders will follow the ECB's report since the last meeting of central bankers. Considering the risks and slowdown of the global economy, we can expect that tons will be dovish, which may lead to a new upward momentum in indices and negativity in EUR.

On the forex market, we are most focused on AUD, after the fall of last night, with a sharp correction before the start of the European session being a good place to position ourselves with new short positions towards the trend. Despite yesterday's speculation of the USD, green money has received new support and we can continue to buy dollars against the yen.

In commodities, gold and palladium continue to record new peaks, but the levels there are too high for new purchases. Today, oil traders will be waiting for Crude Oil Inventories at 6:00 PM, with the WTI technical formation suggesting a downside, at least short-term, and looking at winnings of long positions or short positions.

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