European benchmarks opened lower following the bearish trend European benchmarks opened lower following the bearish trend sparked at the end of the US trading session yesterday but quickly bounced back as bull traders defended support levels.
Fed Chairman Jerome Powell’s warning that borrowing rates may not be at “restrictive enough” levels surprised investors yesterday, stalling the rally in equities and treasuries while sending the US dollar higher.
This sudden hawkish tone contrasts with the dovish hints provided during the last FOMC meeting, leaving investors with a blurry feeling about the outlook on monetary policies.
However, since the European opening bell, bull traders seem powerful enough to prevent the market from dipping much deeper, successfully defending the 4,195.0pts/4,200.0pts zone on the STOXX-50.
Investors are likely to now wait for clear direction and action from central banks rather than relying on rumours and semantics. That said, equity markets may consolidate in a lower volatility environment as investors will wait for next week’s data (US/EU/UK CPI) before bringing significant adjustments to their risk exposure.
Pierre Veyret – Technical analyst, ActivTrades
EUSTX50 trade ideas
EU50 low risk for shortshi Traders,
EU50 broke the upsloping support and retested it as resistance which confirms our bearish bias.
It's still in pretty low risk area for short entry.
Difficult to be bullish on EU50 , especially now when we've seen a weekly bearish engulfing candle last week.
Risk - Reward ratio: 4.11
Entry , stop loss and target are shown on the chart
Good luck
Bullish eurostoxx 50 at 15 min chartBullish eurostoxx 50, at 15min char, on my bet, for 30 euros, or 30 pips
Eurostoxx 50 at Important Support.Eurostoxx 50 at Important Support. Production in Europe is Declining
As data released this morning showed:
→ Purchasing Managers' Index (PMI) in France: actual = 42.6, expected = 44.4, a month ago = 43.6. Thus, the index dropped to its lowest level since the panic associated with the spread of coronavirus.
→ PMI in Germany: actual = 40.7, expected = 40.1, a month ago = 39.8.
Since the values of the PMI index (considered a leading indicator of the state of the economy, calculated by S&P Global) are significantly below 50, this indicates a contraction of the economy in the 2 most important countries of Europe in the context of high interest rates.
It is not surprising that the European stock index Eurostoxx 50 shows bearish dynamics: the price is below the SMA (100), which is directed downwards. The publication of PMI values added negativity. Will the bearish trend continue?
The Eurostoxx 50 chart gives hope, because the Eurostoxx 50 has dropped to key support, which is located at the psychological level of 4,000. In the past, this level has had a noticeable impact on market dynamics: the price either bounced or made a breakout with a subsequent test. This psychological level property can be used to find an entry point into a position while reducing risk.
It is possible that the level of 4,000 may become a factor for the emergence of a bullish impulse, which will lead to a noticeable rebound; the proximity to the lower line of the ascending channel (shown in blue) can also add courage to the bulls.
But for the rebound to develop into a sustainable upward trend, it can be assumed that positive evidence about the state of the European economy will be required.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Eu50eur bullish 15min chartEurostoxx 50 eu50eur bullish for some bucks at 15 min chart, target 60
Its my bet on this one, but we can have a need of close the position if it turns arround
Bullish at eu50eurBullish at eu50eur 1hr chart, just take the best spot to put a long position or buy, with the smaller timeframes
EUR50EUR Long Pivot: 4280.00
Our preference:
long positions above 4280.00 with targets at 4341.00 & 4358.00 in extension.
Alternative scenario:
below 4280.00 look for further downside with 4257.00 & 4237.00 as targets.
Comment:
the RSI is bullish and calls for further advance
Breakout RetracedWe've seen an outbreak from the mid July range. Today's upward retracement has built a new bear flag. Dtarting from this retracement level we could see new lower prices now.
SupportedWe have reached a sufficiently old support/resistance level now. As the trend is still bullish we may consider this as a fulfilled correction with renewed upward potential.
We are still trading in a range so no vast profit is expected but the support seems to important to me to miss the opportunity of a rebound.
EURO50 Short Pivot: 4405.00
Our preference:
short positions below 4405.00 with targets at 4270.00 & 4219.00 in extension.
Alternative scenario:
above 4405.00 look for further upside with 4430.00 & 4457.00 as targets.
Comment:
as long as the resistance at 4405.00 is not surpassed, the risk of the break below 4270.00 remains high.
Growing PressureI see yesterday's spike up as growing pressure to the upside. That's why I am using the intraday correction towards the former trading channel as a chance to take part in the expected continuation of the rise.
European Stocks falls📉 - Whats next?Hi Traders,
the EU50 lost over 3,5% within the last 2 days.
Is this only the first drop before big selloff 📉📉?
Or a normal consildation? Which zones are important?
If we look at the Chart the longterm Uptrend is still valid. So for now it looks like its a normal consolidation.
Important Zones are:
Support: Zone between 4350 and 4300
Resistance: 4500
Also the EMA200 is still moving upwards and the market is right at this zone building a possible reversal (bullish Engulfing).
So there is a possible long trade option.
Wish you maximum success!
Michael - tegasFX
STOXX50 ready for its next upside to 5,041Since our last trade analysis, STOXX50 reached our target at 4,370 from the W Formation pattern that broke up and out of.
Today, we have our confirmation of another bullish pattern for upside, the Box Formation.
The price has broken up and above the pattern and we have upward momentum indicators confirming upside to come including:
7>21>200 - Bullish
RSI>50
Target 1 will be to 5,041
ABOUT THE INDEX
STOXX 50:
The STOXX 50 is a stock index that represents 50 of the largest and most liquid stocks across 18 European countries.
It is one of the most widely followed European equity indices.
Blue-chip companies:
The index comprises blue-chip companies from various industries, including banking, technology, healthcare, energy, and consumer goods.
Diverse countries:
The STOXX 50 includes companies from major European economies, such as Germany, France, Switzerland, the Netherlands, Spain, and others.
Historical performance:
The index was launched in February 1998 with a base value of 1,000 points.
ESXEUR (EU Stocks 50 Index) - in Bullish TrendESXEUR (EU Stocks 50 Index) is in bullish trend as it is making Higher Highs and Higher Lows in 1H timeframe.
Perspective in EuropeI will just sit back and watch this play out. Will post updates if anything significant shows up. The drawings are just for posterity.
#Eurostoxx50 #STOXX50 D1 Ending Diagonal PlayIn this update we review the recent price action in the Eurostoxx50 and identify the next high probability trading opportunity and price objectives to target
*Past performance not indicative of future results
BIGGEST CRASH IS COMING Not financially advice about this. Global depression is coming near and the recession will be a lot worse than 2008.
USA reached new all time high debt; the economy won’t approve this.
Overall inflation is slowing dropping but the economy globally isn’t in a good shape about this.
$EUR50 - Recession - Eurozone OANDA:EU50EUR is officially in Recession due to two consecutive
negative quarters in a row.
The Euro-Zone entered a Recession in the first quarter of this year and economists are not optimistic for the coming months.
Having said that, its Index OANDA:EU50EUR continues to hold its
head up high, but the question is, how much longer will it maintain to do so ?
Will the situation get better for Europe or domino
effect has just gotten started ?
TRADE SAFE
*** NOTE that this is not Financial Advice !
Please do your own research and consult your Financial Advisor
before partaking on any trading activity based solely on this Idea .
RIP EuropaYou wanted diversity. You wanted more females in positions of power. Now you got this.
RIP Europa
