🚀DE30 jumps to 9-month high

Major bourses from Europe and US extend sharp gains from the prior week as China's borders reopening and easing interest rate hike concerns in the US following Friday's data boosted demand for risky assets. DE30 broke above its December high at 14730 pts,and is currently trading at a level not seen since April 2022. If current sentiment prevails, upward move may accelerate towards next resistance at 15500 pts, where highs from February 2022 are located.

China’s continued reopening which bolstered the outlook for the global economy and the demand for commodities is also helping risk-sensitive currencies like Euro, AUD and NZD, while the dollar index tested the 103 mark for the first time since last June. In Europe on one hand, inflation fell more than expected, however, excluding energy, still remains at record levels. Markets expect that ECB will stick to its recent monetary policy path for now, with another rate hike in February. However, some ECB members including Centeno and  Villeroy pointed out that the Eurozone may be approaching a peak rate. Nevertheless EURUSD continues to move higher and today broke above major resistance at 1.0740 and is trading at the highest level since June 2022. If buyers will manage to uphold current momentum, next resistance at 1.0900 may be at risk. This level is marked with previous price reactions and 50.0% Fibonacci retracement of the downward wave launched in May 2021.

EURUSD, D1 interval. Source: xStation5