The Week Ahead – Market Sentiment Shifts again

Brent crude(UKOIL) hitting a higher high

Brent crude(UKOIL) maintained the upward momentum as the current outlook for the black gold shows further demand. While tariffs threaten economic growth and demand, low energy prices could offset some of that impact, with brent and crude both being the beneficiaries. With oil prices hitting their lowest levels since the pandemic last week, a shift in sentiment looks to be the perfect treatment. 66.00 will be a fresh hurdle for bulls to overcome, with 62.50 acting as a support.

EURUSD looking for the next peak

European markets, as well as the Euro, breathed a sigh of relief last week as Donald Trump temporarily reversed course on tariffs. Apart from China, the negotiation for the Euro bloc will be considered, which could lift stocks and the Euro currency to fresh highs. Of course, every day is different as the ongoing trade war rumbles on. But with a fresh perspective this week, the ECB is expected to cut rates again. On the chart, 1.0850 is the closest support, and 1.1100 is the resistance ahead.

NAS 100 recouping losses

The Nasdaq and most stock market indices all rallied as President Trump paused most reciprocal tariffs. The index looks for another fresh high as bulls look to shrug off the expectation of a deep correction. The 90-day pause, plus a substantially lowered reciprocal tariff of 10%, was cheered throughout Wall Street as the new week ahead will bring calmness to the stock market. The index is testing the next high around 19400, and 18600 remains a key support.

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