Skip to content Skip to footer

Is The Recent Market Consolidation About to End?

Heading into Easter weekend, with the weather heating up the well-pressed shirts minus suit jackets have been spotted in many business centers globally. The return of Game of Thrones also keeping many of us debating potential plot twists as it relates to the 7 kingdoms, but what about the markets? Even with Spring upon us the markets have still not fully sprung into action. With record uncertainty surrounding Brexit, the trade war amongst many other fundamentals, traders have stayed on the sidelines awaiting the next directional shift.

This may have come last night in the form of Chinese GDP numbers coming in better than expected at 6.4%. So far today this has led to European Indices trading higher, as well as the EURO trading at its highest point in 3 weeks against the DOLLAR. CNY also gained on USD, reaching its strongest point since February. Earnings season in the US has also seen a boost to equity trading with the likes of Morgan Stanley posting higher earnings than expected.

With the positive news cycle coming in, how exactly have the markets reacted, or are we still anticipating the next wave of action?


After a 5 day sell-off, Gold the main reflection of uncertainty against the Dollar has reached its lowest point this year trading at $1,273. Even though this breakout from its floor may suggest a change of direction, the 14 day RSI shows this as being oversold meaning buyers may already be lurking. Recent history has also shown such breakouts as being false, so it may seem that consolidation will continue, with the potential for this to re-enter the $1,300 region, where it has spent the majority of 2019.


Since re-entering the $1.30 – $1.32 range in February, GBPUSD hasn’t seen much in the way of clear direction. The cable story has been one of buying support, sell resistance. With lack of Brexit clarity causing traders to mainly stick to technical analysis for guidance. Another extension announced this time for Halloween means many may continue to trade this short-term until significant news is announced on either side of the Atlantic, stronger equity earnings from those announced in the US or continued growth of indices attempting to break historical highs may see USD react.

Ultimately the “calm before the storm” means many are in good positions to position themselves for eventual shifts, and as we know from history when the consolidation finally does end, those who anticipated and don’t react will be primed to survive the storm in its fullest glory.

Show CommentsClose Comments

Leave a comment

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.