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EU Market Review 7th May 2021

May 7, 2021 (07:57)

by Elina Nikolova

EURUSD traded last week at a high 1.2150 price area failing to penetrate this important resistance level. Following that, the price took a breather from the previous rally and traded as low as the 1.1990 area failing to penetrate that as well. The Euro seems to be trying to extend its rally vs the Dollar but so far remaining in neutral area between 1.1990 support and 1.2150 resistance. The price action crossed above the 100 day Moving Average at price 1.2050. The Stochastic RSI indicator is seeking to come out of the oversold area below the 20 line, which would mean a possible upward rally. A break below the important support at 1.1990 may push the price further down, possibly reaching the 200 day Moving Average at 1.1940 or surpassing it to find support at 0.618 Fibonacci level at price 1.1880. A possible break of the price above important resistance point at 1.2067 Fibonacci 2.618 extension level may allow the price to rally higher. Important resistance points 1.2150, 1.2243 and 1.2350 formed by previously formed tops.

• The news for EU Economic Area and Europe in general on Friday cover Industrial production and Trade Balance from two of the biggest EU economies, Germany and France. We also have speeches coming up during the day by Christine Lagarde (ECB) and MPC member Ben Broadbent.

• At 06:00 (GMT) the announcement of the German Industrial Production and German Trade Balance are due. Industrial production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.

• At 06:45 (GMT) France will announce French Industrial Production and French Trade Balance following Germany’s footsteps. Trade balance measures the difference in value between imported and exported goods during the reported month.

• At 08:30 GMT the UK Construction PMI is due. These surveys include about 150 purchasing managers which ask respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

European indices yesterday:

• DAX: +0.17%
• EURO: -0.08%
• MIB: +0.13%
• CAC: +0.28%

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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