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EU Market Review 13th May 2021

May 13, 2021 (07:38)

by Elina Nikolova

FTSE registered a monthly high of 7143.50 on May 10th but failed to keep the momentum. The May 10th daily candle is a hanging man which is considered a bearish formation. It is confirmed by the May 11th price action which was a bearish candle. Yesterday the price action registered new lows for a second consecutive day but closed in positive territory. The MACD signal line is crossed below the MACD line, which is signalling a possible reversal to bearish trend. However, both lines are trending above the zero line of the MACD indicator which is still a bullish situation. The price is trading currently on the tentative uptrend line formed from the October 30th 2020 bottom. It is also above the 50 Day Moving Average which also coincides with the important support at 6800 price formed from an inside support from March.
A break and close below the tentative uptrend line may signal a sell-off. Important support observed at 6800 price, 6567 March 25th bottom and the 6300 January 29th bottom.
A break and close above the recent top at 7143.50 may signal a further rally with important resistance at 7400 price, 7666 July 2019 top and at the all-time high price of the FTSE at 7885 price level.

• Announcements for EU Economic Area and Europe today are coming solely from UK. There is a French and German Bank Holiday on Thursday.

• It was a partial recovery of Tuesday’s sell-off for the European majors on Wednesday. Upbeat market sentiment towards the economic outlook provided a cushion for the broader European markets mid-week.

• European Commission said that the euro zone economy will rebound from its COVID-19 slump more strongly than previously thought this year and next, but EU borrowing limits should remain suspended in 2022 so as not to jeopardise that recovery.

• Britain's economy grew by a stronger-than-expected 2.1% in March from February, official data showed earlier Wednesday, while gross domestic product shrank by 1.5% in the first three months of 2021, when the country was under a third lockdown.

• At 12:00 (GMT) UK MPC Member Barry Cunliffe is due to speak about digital currencies and cross-border payments at an online event hosted by the Official Monetary and Financial Institutions Forum.

European indices yesterday:

• DAX: +0.20%
• EURO: +0.03%
• MIB: +0.23%
• CAC: +0.19%

Sources:Investing.com, forexfactory.com, fxempire.com

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

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