- Upbeat sentiment in European and US equity markets
- AUDUSD rebound
- Crude oil continues its upward movement
- Bitcoin returns above $50 000
Today's session on the stock market was dictated by buyers. Good moods are explained by the decrease in fears about a new variant of the coronavirus, according to the latest reports Omicron is not as dangerous as initially thought. Already from the early morning hours we could observe increases on the stock market, which were extended after the entry of capital from overseas. The main European stock indices closed the day on a solid positive note, with the US indices also performing well. Germany's DAX strengthened 2.8%, erasing almost the entire panic sell-off of 26 November, while France's CAC40 gained 2.9% and the Euro Stoxx 50 added over 3.3%.
As for the forex market, most notable was the Australian dollar, which strengthened more than 0.8% against the US dollar. AUDUSD quotations have rebounded from several months' lows, but still remain in a downward trend. Today in the morning we learned about the RBA decision on interest rates, but the bank, as expected, left them at 0.1%, so the volatility at the time of publication was moderate. The Canadian currency also strengthened against the US on Tuesday, with movement on USDCAD reaching 0.7% in favour of CAD.
Looking at commodities, crude oil is doing well, with prices rising for another consecutive session. We will pay 2.6% more for a barrel of Brent than yesterday, while WTI is up over 3%. As for NATGAS, on Tuesday we saw a slight recovery from yesterday's sell-off. For now, however, it is far too little to talk about a change in sentiment.
On the cryptocurrency market, we are seeing a further attempt to rebound after the weekend plunge. Bitcoin managed to go above the round level of $50 000, but it is doing much worse than the second most popular cryptocurrency - Etehreum, which is slowly moving towards historical peaks.
Looking at the technical situation on the AUDUSD currency pair, we can see a broad formation derived from classical technical analysis - Head and Shoulders pattern. According to the book assumptions, the bottom breakout of the neckline argues for a change in sentiment to downward. This scenario will remain valid as long as the price stays below the level of 0.7130.
Despite the rebound, AUDUSD remains below the neckline of the broad Head and Shoulders pattern, W1 interval. Source: xStation5
