Tracking the Money Supply in Europe

Fundamentals

Happy Monday!
Among the fundamental news coming out today, pay attention to the change in Europe’s M3 money supply. You’ll recall that this indicator reflects how much money in cash, deposits, and checks is in circulation. The data come out at 8:00 am GMT. An hour before this indicator is published, employment in Switzerland in the first quarter of this year comes out.
The rest of the day looks fairly quiet. China is celebrating the dragon boat holiday, and the United States is celebrating Memorial Day.
But the current week promises to be interesting, since, as usual, Non-Farm Payrolls will be published on Friday.

Stocks

Only Russia’s Akron will be of interest among corporate news.
Analysis of the main global stock markets indicates that the basic indices are still rising. For example, the UK’s FTSE-100 is at its historical high. Germany’s DAX-30 also remains on a positive track, approaching 13000 points. Overall, of course, we can expect technical corrections, so if you are trading in the derivatives of these underlying assets, we advise building long positions very carefully, with long stops.
You’ll recall that the Russian stock exchange continued to slip on Friday. The MICEX Index closed at 1934.25 points.

Currency Market

Well, on Friday we saw the AUD/CAD pair at parity. The forecast we made in previous reviews was confirmed. The support is at 0.9970, where a 50% Fibonacci correction is located. If this level is broken through, chances are that a bearish double top pattern will form. If the pattern does appear, the target for a decline on the daily charts might be 0.9594, which is a 100% correction relative to the growth wave that began in January of this year.
We are still watching the divergence of the MACD and daily price chart for the GBP/CHF pair. The basic oscillators have entered oversold territory, which is beginning to attract the attention of the bulls. We need to wait for confirmation of the reversal of the pound or confirmation of a false MACD signal. Until then, naturally, it’s better to follow the bears.

Nikolay Dudchenko, Olymp Trade analyst

Olymp Trade Review