Two trades to watch EU Stoxx 50 EURUSD
EuroStoxx 50 hovers around all time high
Euro Stoxx 50 hit fresh post pandemic high on Monday amid a continuation of Friday’s NFP inspired rally.
Today trading is more subdued after an indecisive session on Wall Street.
Shrugged off news of the G7 global corporate tax deal and its potential impact on earnings.
Improved outlook as lockdown restrictions ease is boosting automobile & banking stocks.
Eurozone GDP 3rd reading due today however main focus will be on US CPI & ECB on Thursday.
Where next for Euro Stoxx 50?
Euro Stoxx 50 trades within an ascending channel dating back to early November. It trades above its 50 & 100 daily ma in an established bullish trend. The MACD is supportive of further upside.
The index took the key psychological level 4000 in early April and was consolidating between 3950-4050 until the end of May when it started to push higher again. For now, it trades just below the mid point on the ascending channel around 4100.
Buyers will be looking for a a breakout above 4100. It would take a move below 4000 the psychological level and 50 sma to negate the near term uptrend and a move below 3950 to move below the ascending channel.
Learn more about trading indices
EUR/USD trades below 1.22 ahead of German ZEW sentiment data & EZ GDP
EUR/USD trades mildly lower after two straight sessions of gains amid subdued mood in the market.
German industrial production unexpectedly declined in April by -1% MoM, down from 2.2% increase in March and worse than the 0.5% rise forecast.
Eurozone Q1 2021 GDP is expected to confirm -0.6% QoQ and -1.8% YoY.
German ZEW sentiment data expected to tick higher to 85.3, up from 84.4
USD trades subdued, holding above 90.00 as investors look ahead to CPI data
Where next for EUR/USD?
EUR/USD chart is displaying several bearish signals. Last week the price broke below the ascending trendline dating back to early April.
The 20 & 50 sma formed a death cross, whereby the 20 sma crossed below the 50 sma in a bearish sign.
However, EUR/USD continues to trades above the 200 sma on the 4 hour chart which offers support at 1.2135. It would take a move below this level to spur a deeper sell off towards 1.21 low June 4 and 1.2050 low May 13.
On the upside buyers will be looking for a move back over 1.22 round number yesterday’s high and 1.2255 the June high.
Learn more about trading forex
How to trade with City Index
Follow these easy steps to start trading with City Index today:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.
City Index is a trading name of StoneX Financial Pty Ltd.
The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.
While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.
StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.
It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.
StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.
© City Index 2024