Free Trial

Financials Find Support at 200DMA

EMERGING MARKETS
  • The slight 'dovish' tone from the Fed last week has eased the risk aversion and generated support for traditional risk on investment such as FX carry trade (vs. US Dollar).
  • Hence, the broad USD weakness has been positive for EM cyclical stocks, with EM financials trending higher this week after finding support at their 200DMA (325.21).
  • Next resistance to watch on the topside stands at 332.63, which corresponds to the 76.4% Fibo retracement of the 224.27 – 366.10 range, followed by 335.50 (100DMA).
  • On the downside, ST support stands at 320, followed by 311.92 (61.8% Fibo).

Source: Bloomberg/MNI

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.