Beyond Technical Analysis
Gold at risk if US–China talks fail📊 Market Overview:
• Spot gold is trading around $3,309–$3,311/oz (according to TradingEconomics, Kitco…), slightly down by 0.5% as markets await the outcome of US–China trade talks in London.
• The US dollar has eased following some positive signals from the talks, but overall market caution remains high ahead of the June 11 CPI release and the upcoming Federal Reserve decision.
📉 Technical Analysis:
• Key resistance: $3,340 (June consolidation ceiling); further upside at $3,353–$3,370 if a breakout occurs.
• Nearest support: $3,298 (monthly pivot); if breached, price may move toward $3,270 → $3,243.
• EMA09/EMA20/EMA50: Price is trading below the short- to mid-term EMAs, indicating a consolidating or slightly bearish trend.
• Candlestick/momentum: Sideways structure within $3,298–$3,332; weak momentum. RSI and Stochastic are below mid-levels, signaling market caution.
📌 Outlook:
• Gold may continue to consolidate or edge lower in the short term if the US–China negotiations fail to deliver a significant breakthrough and no strong bullish data emerges.
• Conversely, any signs of renewed tension, failed trade talks, or unexpectedly high inflation figures could reignite bullish momentum and push prices back toward the $3,332–$3,370 range.
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💡 Trade Strategy Suggestion:
➡️ SELL XAU/USD
Entry: $3,330–$3,335
• 🎯 TP: ~$3,310
• ❌ SL: $3,345
➡️ BUY XAU/USD
Entry: $3,298–$3,305
• 🎯 TP: ~$3,320
• ❌ SL: $3,288
BITCOIN WEEKLY WYCKOFF — DISTRIBUTION OR REACCUMULATION?BTC has formed a textbook Wyckoff structure on the weekly chart — but are we entering Phase D markdown, or is this just a trap before continuation?
📉 Distribution Case (Primary Bias):
BC → UT → UTAD clearly defined
Bearish RSI divergence at UTAD confirms momentum exhaustion
Volume drying up = weakening demand
🎯 Targeting the 0.618–0.66 fib zone near 87k–89k, confluence with previous structure
🧠 Reaccumulation Possibility (Alternative Scenario):
Structure also mimics Reaccumulation Schematic #2
If support at 101k–104k holds and price reclaims 112k with strong volume → UTAD may prove to be a SOS, not a trap
⚠️ Levels to Watch:
🔺 UTAD: 112,087
🔸 BCLX: 108,496 → structural pivot
🔻 AR: 92,160 → distribution confirmation if lost
🎯 Target: 89,050 – 87,206 (fib + horizontal confluence)
🟠 Final invalidation for reaccumulation: weekly close below 87k
Whether we’re heading for Phase D markdown or one final shakeout before markup, this structure will define BTC’s path for the coming months.
Bias: Bearish unless price reclaims UTAD with strength.
Conviction: Grows with breakdown + volume spike under 101k.
XAU/USD📰 Market Insight: What If the U.S. and China Strike a Deal?
If the United States and China reach a trade or geopolitical agreement, we could witness a significant shift in global market sentiment. Here’s why this development matters — and how it could impact major asset classes:
📈 Risk-On Environment Expected
A successful U.S.-China deal would reduce uncertainty and ease global trade tensions. Investors typically respond to such positive geopolitical news by rotating out of safe-haven assets and into riskier ones — such as equities, emerging markets, and high-yield assets. This behavior is what we refer to as a "risk-on" environment.
📉 Gold Likely to Decline
Gold, as a traditional safe-haven asset, thrives during times of uncertainty, war, or financial distress. But if a U.S.-China deal brings stability and boosts risk appetite, demand for gold could weaken, leading to a decline in gold prices. This is a typical inverse correlation between gold and investor sentiment.
are you the Messi or Ronaldo of trading“In football, some say Messi was born with it, and Ronaldo built it. In trading, the same debate lives on—are the best naturally gifted, or relentlessly crafted?”
The Messi vs Ronaldo debate is more than just about football. It’s a lens into how we perceive greatness:
Messi, the effortless genius, gliding past defenders like he was born with a ball at his feet.
Ronaldo, the relentless machine, forged through discipline, self-belief, and sheer work ethic.
Both legends. Both dominant. But two very different paths to mastery.
And that same question echoes loudly in the world of trading:
Are great traders born with a gift—or made through grind, loss, and experience?
The “Natural” Trader : Messi
There’s a romantic idea that some traders just have it:
They “see” the market differently.
They time entries perfectly.
They stay calm in chaos.
But what we often overlook is that this perceived instinct is usually refined intuition, earned through thousands of chart hours, hard-won lessons, and deep emotional work.
Just like Messi has trained for decades—even the gifted must still grow.
The Ronaldo Blueprint: Greatness Is Built
Cristiano Ronaldo is often cited as the perfect example of what's possible through obsession, sacrifice, and discipline. Every goal, every leap, every sprint—is a result of work. And in trading, that blueprint is more common than you think.
Here’s how great traders are built:
Through structured process. Clear rules, risk protocols, and systems that remove emotion.
Through deep reflection. Journaling trades, studying behavior patterns, reviewing psychology—not just price.
Through emotional mastery. Remaining centered during drawdowns and not getting high off wins.
Through resilience. Getting back up after losses, blown accounts, bad calls, and still showing up.
This is the Ronaldo of trading. And it’s replicable—if you’re willing to put in the reps.
Talent Helps—but It’s Never Enough
Yes, some traders may be “wired” with certain advantages:
Pattern recognition, mathematical intuition, calm under pressure. But just like talent in sports, without discipline, it fades. Without consistency, it cracks.
In truth, most consistently profitable traders you’ll meet are not the flashiest or most “gifted.”
They’re the most adaptable, the most disciplined, and the most reflective.
So… Which One Are You?
It doesn’t matter. Because the bigger question is:
Are you willing to grow into the trader you want to become?
Great traders are not born or made.
They are choosing to evolve—every day.
They put ego aside and put in the work.
They trade with intention, not impulse.
Nerd Tip:
You might start your journey as a “Messi” or a “Ronaldo,” but in the markets, the path is yours to shape.
The charts don’t care where you begin—they respond only to how you show up.
So whether you’re gifted or grinding—
Keep sharpening the edge. Keep showing up.
Because in this game, consistency beats brilliance.
Stay disciplined. Stay dangerous.
put together by : Pako Phutietsile as @currencynerd
NATGAS 8H - Time frame Analysis📈 Natural Gas 8H – Bullish Setup Breakdown 🔥
Price is showing strong bullish intent after reclaiming a key demand zone and respecting the ascending trendline. We’ve got multiple confirmations stacking up:
✅ Trendline support holding perfectly — showing consistent higher lows
✅ Demand zone reclaimed — price now basing above previous resistance
✅ 200 EMA flip — acting as dynamic support
✅ Rising volume on bullish candles = buyers stepping in
✅ Breakout from mini swing range underway
🎯 Trade Plan:
🔹 Entry: 3.42 – 3.48
🔹 Stop Loss: Below 3.28
🔹 Target 1: 3.80 (local highs)
🔹 Target 2: 4.30 (buy-side liquidity grab)
EURUSDPrice has recently retraced to a key support zone and is showing bullish structure on the lower timeframes. A long position is anticipated based on the confluence of the Fibonacci retracement and recent bullish momentum.
Entry: Buy EUR/USD at current market price or upon confirmation of bullish candlestick pattern near the 50%-61.8% Fibonacci retracement zone.
Partial Take Profit: Secure partial profits at the 50% Fibonacci retracement level of the previous swing move.
Final Take Profit: Trail remaining position toward the 100% extension or next significant resistance.
Stop Loss: Below the 61.8% retracement or just under recent swing low for risk management.
Rationale: Bullish order flow combined with Fibonacci confluence suggests a potential continuation move to the upside. Taking partial profits at the 50% level ensures capital protection while allowing room for extended gains.
EURJPY Technical Breakdown (MMC Strategy) : Target Zone 🧠 Concept Focus: MMC – Mirror Market Concept
The Mirror Market Concept (MMC) helps identify pattern inversions, price reflection zones, and structural symmetry that hint at upcoming market turns. This chart reflects a curve-based reversal logic rooted in smart money behavior, volume analysis, and pattern exhaustion.
📊 Technical Structure Breakdown
🔹 1. Volume Contraction + Breakout (June 6–7)
Early signs of bullish pressure were detected with volume contraction, forming a tight range wedge/triangle.
This is often a liquidity trap where weak hands sell into strength.
Smart money absorbed sell-side liquidity before impulsively breaking out.
This is a common MMC move: contract > trap > expand.
🔹 2. 50% Area Used – Smart Money Trap (June 9)
After the breakout, price tapped into the 50% equilibrium zone of the previous major move.
This level often acts as a liquidity sweep zone, ideal for smart money to unload or build counter positions.
The rejection wick here confirms that institutional traders reacted at this level.
🔹 3. Curve Bending Pattern – Exhaustion in Play
The market has now entered a curve bending phase, visible with the arching price movement.
This signifies momentum exhaustion, where bullish attempts get weaker.
Think of this curve like a mirror ceiling — as each high gets tapped, it bends, showing the market can't sustain higher levels.
🔹 4. Next Reversal Zone (Projected Target: ~164.150–164.200)
Based on MMC symmetry and previous demand zones, the area highlighted as Next Reversal is a key structure zone.
This is where we expect price to react — either bounce (for buyers) or break (for continuation shorts).
A clean bounce here could mirror the earlier pattern in reverse, hence the Mirror Market Concept.
🔁 Summary of Market Psychology
🧲 Volume contraction signals manipulation.
🎯 50% zone rejection shows trap completion.
🪞 Curve bending shows buyers losing strength.
🔻 Price likely to drop into the reversal zone, completing the mirror leg.
🧩 What Traders Should Watch
Indicator/Zone Notes
50% Area Used Smart Money Exit or Entry Trap
Curve Bending Reversal Geometry (Momentum Exhaustion)
Next Reversal Zone Smart Money Demand Zone (~164.150)
Break Below 164.100 Confirms deeper bearish continuation
🎯 Trading Strategy Outlook
🔍 Short Bias: Look for confirmation (e.g., bearish engulfing, BOS on lower TFs) to enter shorts below curve zone.
🛑 Invalidation Level: Clean breakout above 165.500 would invalidate the mirror structure and shift to continuation long.
🎣 Reversal Scouting : If price respects the Next Reversal Zone, there could be a potential long scalp back into mid-range.
🧠 Educational Note: MMC in Action
The Mirror Market Concept is powerful for intraday trading. It uses pattern reflection, liquidity logic, and price symmetry to forecast reversals before typical indicators catch up. If mastered, this concept can give early reversal entries and trap avoidance.
EURUSD Analysis (MMC Strategy) : Structure Mapping + Target🧠 Overview
This analysis is based on the MMC (Market Mapping Concept), combining smart money principles, structure mapping, and price behavior analysis. EUR/USD has been showing strong bullish activity over the past few months, but we are now approaching a critical decision zone. Let’s break it all down.
🔹 1. Arc Structure – Accumulation Phase (Dec 2024 – Feb 2025)
The chart starts with a well-defined Arc formation, signaling accumulation by large players.
Price showed a series of higher lows within the arc, compressing volatility.
This is where smart money quietly loads positions before pushing price.
Key Insight: This arc often precedes an impulsive breakout, as seen next.
🔹 2. Central Zone Breakout (Feb – Mar 2025)
The price exploded out of the arc, breaking through the central compression area.
Marked as the Central Zone, this acted as both support and a launchpad.
This phase included imbalance filling, reaccumulation, and clean price action.
Observation: Notice the aggressive bullish candles—clear indication of institutional interest.
🔹 3. Structure Mapping & QFL Zone (April 2025)
A classic QFL (Quick Flip Level) was formed after the initial rally.
Price pulled back into a structure support zone, respected it cleanly, and bounced back.
This gave a textbook smart money entry.
Structure Mapping highlights how each leg of the trend is forming based on supply/demand reaction.
🔹 4. Major BOS – Break of Structure (May 2025)
Price broke the previous swing high, giving us a Major Break of Structure.
This BOS confirms a change in character (CHOCH) from ranging to trending.
After BOS, the market retested the breakout zone—providing a second ideal long entry for continuation traders.
🔹 5. Minor Resistance Zone (Current Price)
Currently, price is testing a Minor Resistance zone around 1.1400–1.1450.
This level acted as resistance earlier and may slow price down temporarily.
However, there’s still room for bullish continuation unless reversal patterns emerge.
Key Watch Point: If price shows weakness here (e.g., rejection wicks, bearish engulfing), short-term retracement may follow.
🔹 6. Next Reversal Zone (Projected Target: 1.1700–1.1800)
The green box above marks the Next Reversal Zone, based on historical supply, Fibonacci extension levels, and structure analysis.
Expect this area to act as strong resistance unless momentum is very strong.
This is a potential TP zone for long traders or an area to scout for short opportunities if reversal signals appear (divergence, order block rejection, liquidity grab).
📌 Key Levels
Zone Price Range Role
Central Zone 1.0800–1.1000 Support/Accumulation
Minor Resistance 1.1400–1.1450 Immediate Hurdle
Next Reversal Zone 1.1700–1.1800 Target / Short Setup
QFL Zone 1.1100–1.1200 Smart Money Entry Point
🧠 Strategy Outlook
✅ Bullish Bias: Structure is clearly bullish. Buyers are in control.
🕵️♂️ Watch for Reaction at Minor Resistance – a clean break = continuation, rejection = short-term pullback.
USDJPY Analysis: MMC Resistance vs Major BOS (Technical View)🔍 Chart Summary:
The USDJPY pair is currently trading around 144.58, showing strong signs of structural buildup as it approaches a critical inflection point. This analysis leverages MMC (Market Mapping Concept) and price action structure to identify two possible directional outcomes — each grounded in key technical levels.
🧠 Key Technical Highlights:
📌 1. Expanding Wedge Pattern:
Price previously formed an expanding structure, signaling volatility and accumulation.
Expansion typically precedes major directional breakouts — either trend continuation or reversal.
📌 2. Downtrend Break Test:
A long-standing descending trendline has now been tested multiple times.
A confirmed breakout would be significant, indicating a major shift in market momentum.
📌 3. Resistance Zones:
Minor Resistance Zone around 158.00–160.00 marks a key supply area.
Watch for price action behavior if this level is tested — possible rejection or breakout continuation.
📌 4. Major Support Zone:
Support near 139.00–140.00, where price previously bounced, represents a solid floor and demand zone.
📌 5. BOS (Break of Structure):
Two BOS levels are marked:
Minor BOS (Around 146.00): Immediate reaction level to watch.
Major BOS (Around 149.00–150.00): If broken, could lead to sharp bullish continuation.
🔮 MMC Forecast Scenarios:
✅ Condition 1: Bullish Breakout Scenario
Price breaks above the descending trendline and clears the Minor BOS.
Target zone: 158.00–160.00 resistance.
Structure confirms bullish dominance if Major BOS is cleanly broken and retested.
⚠️ Condition 2: Bearish Rejection Scenario
Price rejects from current trendline or Minor BOS and reverses.
Potential drop toward Major Support around 140.00.
Watch for reversal confirmation with bearish engulfing candles or re-entry into expanding zone.
🧭 MMC Outlook Summary:
The chart is setting up for a key decision point. The market will either validate a bullish breakout structure or revert back into bearish continuation. These scenarios align with the MMC mapping method, providing clear conditions for traders to follow without bias.
Bitcoin Breaks Out: Bullish Momentum Builds Above Key LevelsHello guys!
The chart of Bitcoin reveals a significant bullish breakout, characterized by two key technical developments:
Broken Ascending Channel:
Bitcoin was trading within an ascending parallel channel, gradually making higher highs and higher lows. This channel was recently breached to the downside, suggesting a temporary weakening in momentum.
False Breakdown and Strong Reversal:
Despite the initial breakdown from the channel, Bitcoin swiftly reversed and surged upwards, reclaiming previous support levels with strong bullish candles. This “fake-out” move often traps bears and reinforces bullish sentiment.
Trendline Breakout:
More notably, BTC has broken above a descending trendline, which had acted as a resistance zone. This breakout, backed by strong volume and momentum, indicates a shift in market structure from consolidation to potential expansion.
Projected Upside Target:
Based on the breakout projection drawn on the chart, the next major resistance appears near the $109,600 level. This aligns with the upper purple dashed line, which may represent a historical resistance zone or a Fibonacci extension.
XAUUSD – Bullish TradeXAUUSD – Bullish trade on 2H 📈
Gold is currently showing signs of slowing bearish momentum. Watching for a potential correction and push back toward the 3331–3333 key levels.
🟢 Price could sweep liquidity below current lows and reverse upward.
Plan: Monitoring for bullish confirmation. If momentum builds, I’ll look to target the 3333 zone for short-term gains.
⚠️ Not financial advice — just sharing my view. Trade safe.
#XAUUSD #Gold #Forex #MarketAnalysis
BTCUSD Technical Analysis (MMC) – Resistance or Target Zone🔍 Overview
Bitcoin has executed a strong bullish recovery over the past few sessions, breaking out of a well-structured bullish channel and testing a significant resistance zone. The move exhibits traits often identified in MMC strategies, including liquidity grabs, engineered price action, and trap-based breakouts.
This chart analysis combines curve support structures, channel dynamics, and resistance reactions—all crucial components of technical strategy layered with smart money behavioral cues from MMC.
🔹 Price Action Breakdown
📈 1. Blue Ray – Liquidity Shift Signal
The bullish impulse was initiated from what is labeled the "Blue Ray" zone—a deep liquidity pocket often used by smart money to trap sellers.
This area marks a liquidity sweep after a steep selloff, creating the perfect environment for institutional buy orders to fill before driving price upward.
📉 2. Channel Formation & Breakout
A clean ascending bullish channel formed during the rally, showing a methodical stair-step price climb.
This consolidation phase provided multiple reentry opportunities before a sharp breakout, which signals a transition from accumulation to expansion, often seen in MMC mapping.
🧭 3. Curve Support – Parabolic Price Action
Price hugged a curve support line, often interpreted as a parabolic base.
This curve reflects increasing momentum—buyers are stepping in earlier at each dip, creating higher lows in a tightening arc.
This structure is also commonly seen in smart money accumulation zones as price is pushed upward while retail sentiment lags.
🚧 4. Resistance Zone – High Interest Reversal Region
BTCUSD is now inside a key resistance zone (~$109,800–$111,500), which has acted as both supply and previous swing highs.
MMC traders often identify these zones as trap areas, where price gets aggressively pushed up to fill institutional short orders.
This zone contains high sell-side liquidity, meaning there's a strong chance for a reversal or false breakout.
🔄 5. Projected Reversal Zone
A potential correction could bring price down to the next reversal zone (around $106,500–$107,500).
This zone is supported by:
The curve structure, which is still active.
Previous minor resistance turned support.
Institutional demand likely waiting to reload long positions.
📉 Possible Scenarios
✅ Bullish Continuation
If BTC can break and sustain above $111,500, especially with strong volume, it will likely push into new local highs.
In this case, curve support may be used for re-entry on pullbacks.
❌ Bearish Reversal Setup
A rejection from this resistance zone—especially with a long-wick candle, engulfing pattern, or divergence—could confirm a short-term top.
MMC-style reversals often occur quickly and aggressively, trapping late buyers.
⚙️ Trade Management Insights
Trade Setup Entry Area Target Stop-Loss Notes
Aggressive Short ~$110,800 ~$107,500 ~$111,800 Only on strong rejection pattern
Conservative Long ~$107,000 Retest $110,000+ Below $105,500 Only if curve support holds clean
Breakout Buy Above $111,800 Open upside Below $110,000 Wait for breakout + retest
🧠 MMC Observations
Price Engineering: The market moved through clean zones quickly—classic MMC manipulation to clear liquidity.
Trap Zones: The resistance zone may act as a bull trap where late retail buyers are absorbed.
Smart Money Flow: Institutional traders may now shift to distribution mode unless curve support holds firmly.
💬 Final Thoughts
Bitcoin is at a key decision point. Traders should remain flexible but vigilant. The presence of curve support combined with aggressive upward momentum suggests bullish strength, but the resistance zone and prior liquidity behavior warn of potential trap activity.
Monitor the reaction closely in the next 1–2 candles. A failed breakout could trigger a swift 2–3K retracement.
📌 Tip: Combine this analysis with on-chain volume or open interest data for better conviction.
Guide: How to Read the Smart Farmer SystemDear Reader , Thank you for tuning in to my first video publication.
This video explains the 3-step signal validation process—helping you quickly and precisely anticipate market intent and liquidity dynamics before taking action.
We do not react to noise; we respond with structured execution because we understand the market’s true game.
Listen to the market— this guide is here to sharpen your journey.
Correction Notice (16:58 timestamp): A slight clarification on the statement regarding signal validation :
SELL signals: The trading price must close BELOW the Price of Control (POC) and Value Average Pricing (VAP) without invalidation occurring in both the confirmation candle and progress candle.
BUY signals: The trading price must close ABOVE the Price of Control (POC) and Value Average Pricing (VAP) without invalidation occurring in both the confirmation candle and progress candle.
Multiple signals indicate liquidity games are actively unfolding, including accumulation, control, distribution, and offloading.
GBPUSDHello Traders! 👋
What are your thoughts on GBPUSD?
On the 4-hour timeframe, GBPUSD has broken below its ascending trendline and is now trading below a key resistance zone.
We expect the pair to consolidate briefly within this area, and then move lower toward the specified support level.
As long as the price remains below the resistance and the broken trendline, the bearish bias remains valid.
Don’t forget to like and share your thoughts in the comments! ❤️
Eurobonds: Europe Seizes on Trump’s Fiscal MisstepBy Ion Jauregui – Analyst at ActivTrades
The tax bill proposal put forward by the Trump administration — known as the “Big Beautiful Bill” — includes a controversial clause, number 899, which threatens to tax dividends and coupons from U.S. assets received by foreign investors from countries deemed “hostile” or “discriminatory” toward the United States. While designed as a geopolitical pressure tool, this measure could ultimately undermine the U.S. market itself and present a historic window of opportunity for Europe.
For years, Brussels has aimed to boost the appeal of its markets against U.S. dominance. Regulatory measures like MiFID II, the push for strategic autonomy, and the introduction of common debt instruments such as Eurobonds have steadily gained ground. Now, with the prospect of a direct penalty on foreign investment in the U.S., European assets — offering favorable real yields and a strengthening currency — are emerging as a solid alternative.
The European Central Bank has already warned that this is “a window not to be missed.” Christine Lagarde has hinted that the euro could strengthen to the point of becoming a global reserve currency, particularly if new joint debt issuances are used to fund defense spending. Amid growing geopolitical tensions and declining confidence in “American exceptionalism,” the debate over mutualizing European debt is returning with renewed momentum.
Clause 899 effectively acts as a self-imposed competitive disadvantage for the U.S. In a globalized market, such a tax reduces the real returns of American assets and redirects capital flows elsewhere. If Europe accelerates Eurobond issuance and reinforces its fiscal framework, it could turn this American fiscal crisis into an unprecedented geopolitical opportunity.
Building a Eurobond Market
Since the landmark Next Generation EU plan in 2020, the European Union has made steady progress toward creating a joint debt market. By 2025, over €450 billion in debt has been issued, with new rounds under discussion to fund defense, security, and the green transition. This has helped develop a more complete yield curve, improved market liquidity, and strengthened the euro’s role as a reserve currency.
Relative Yields and Monetary Context
Although European bonds offer lower yields than their U.S. counterparts (e.g., the 10-year German Bund yields around 2.5% versus 4.3% for the U.S. Treasury), the ECB’s monetary tightening cycle has moderated. Inflation in the eurozone has fallen below 3%, and interest rates are beginning to decline. This supports the appreciation of long-term European bonds in anticipation of future rate cuts. Additionally, the risk premiums for countries like Italy and Spain have narrowed, reinforcing confidence in European fiscal cohesion.
Rising Foreign Demand
Foreign holdings of U.S. debt have fallen — from 50% in 2014 to about one-third in 2024 — while European debt is gaining traction. According to ECB and BIS data, every €100 billion in foreign purchases reduces yields by roughly 20 basis points, suggesting that continued demand could exert downward pressure on yields in the medium term.
Strong Euro and Yield Curve Management
With the euro on the rise — projected to reach 1.19 USD by 2028 — euro-denominated assets are becoming more attractive to global investors. Moreover, the ECB retains the ability to intervene in secondary markets, preventing excessive yield curve distortions and maintaining financial stability.
10-Year Eurobond Technical Analysis
Between the final quarter of 2024 and March 2025, 10-year Eurobonds staged a steady recovery before stabilizing in a consolidation range between 2.359% and 2.675%, with a current average of 2.512%. The bond’s technical structure signals a bullish trend, supported by a positive moving average crossover, which could push yields toward the upper end of the range.
The RSI currently stands at a neutral level of 52.38, indicating room for further upward movement without entering overbought territory. Additionally, the 2.568% level has proven to be a dynamic support, having rebounded multiple times, reinforcing its significance as a launchpad for further yield increases.
Conclusion
European bonds are experiencing a structural opportunity driven by U.S. fiscal missteps, growing fiscal integration within the eurozone, and a declining interest rate environment. If Europe continues to push joint bond issuances to fund strategic initiatives such as defense, energy transition, and digitalization, Eurobonds could solidify their status as a viable and competitive alternative to U.S. Treasuries.
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