- EMISS prices surge on rights uncertainty
- Chinese stocks decline amid Trade Wars fears
- EURSEK at a critical level after elections
CO2 emission rights in the EU might not make for a typical commodity but as the price surges into a stratosphere traders are paying attention. EMISS price has increased by 41% since the beginning of August, adding to an already impressive trend. The EU introduced emission right to incorporate the Paris Accord and discourage forms of energy production that cause pollution. As the amount of rights is set to decline over time some companies might have preferred to secure their right in advance. The last couple of days has brought a panic buying and we have seen that prices took off even from a steep upward trend line. A formation of three bullish candles normally begins the trend but here the trend is well developed so the signal is less clear. The key support zone in case of correction is at around 21.50.
EMISS prices have literally exploded. Will we see a correction to 21.50 or the trend line? Source: xStation5
No support is strong enough if you have Donald Trump against you. CHNComp saw a decent support zone at 10400 points being a culmination of lows and a target of a triangle formation from the first part of the year. However, that level has been broken as the Chinese equities suffer from trade related worries. Let us recall that business consultations regarding additional duties on the imports from China have concluded and the tariffs can be announced any time. The next support is at 10100 points but right now the market is clearly in the bearish mode.
CHNComp broke down from the recent consolidation. Source: xStation5
EURSEK is the pair worth watching these days. There’s a possible large double top formation that could place a long term upwards trend at risk. However, the bulls have their chances too as the 10.45 range is being treated as a support. Parliamentary elections in Sweden have not resulted in any coalition enjoying the majority so the next few weeks may bring a heightened political uncertainty. Then again, the ani-EU Sweden Democrats got a weaker result that the polls indicated (although the party still vastly improved on their 2014 result).
EURSEK is testing the key 10.45 level. Source: xStation5
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