European equities surge after US-China trade truce

Intermediate
  • A strong advance for global stock markets Monday after positive geopolitical events at the weekend.
  • The EURO STOXX 50 pushed through a key peak at 3487 to re-energize an intermediate-term bull theme.
  • Furthermore, despite significant geopolitical developments over the past weekend impacting markets Monday, this week still has much to offer as can be seen here in the FX Explained MacroWatch.

EURO STOXX 50 threat stays higher

A Monday bull gap (3476-66) to then push through the cycle peak at 3487 and 3500, to build on Friday’s very strong rally through various resistances, and despite an intraday setback, whilst above the support gap keeping the bias to the upside Tuesday.

The early June push through 3400 set an intermediate-term bull trend.

For Today:

  • We see an upside bias through 3495; break here aims for 3509 and 3517.
  • But below 3476 opens risk down to 3466, maybe 3455.

  • Intermediate-term Outlook – Upside Risks: We see an upside risk for 3500, 3533, 3576 and 3681.

What Changes This? Below 3413 shifts the intermediate-term outlook back to neutral; through 3350 is needed for an intermediate-term bear theme.


Resistance and Support:

3495 3509* 3517 3533* 3549/50
3476* 3466** 3455 3444 3428*

4 Hour EURO STOXX 50 Future Chart

4 Hour EURO STOXX 50 Future Chart

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest News

The Forex Zone
The Forex Zone – Risk On

The US Dollar and the Japanese Yen weaken as the risk on environment continues. The Forex Zone looks at day trade themes for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY. EURUSD: Risks flip back higher A very whipsaw session Thursday through the ECB with an initial selloff through to just hold … Continued

EURUSD Chart
Euro in focus into key European Central Bank (ECB) Meeting

All eyes will be on the European Central Bank (ECB) Meeting today, which much anticipation around a more dovish shift. US Dollar weakness has seen EURUSD rebound in September with a resumption of a global “risk on” theme, but the EURUSD Forex rate losses over the past 24 hours highlight caution into the meeting. EURUSD: … Continued

aud usd chart
Australian Dollar stays strong in risk on scenario (AUDUSD)

The “risk on” phase has contoured into the second week of September as global geopolitical tensions ease. Positive news in early September regarding Brexit, the US/China trade war and from Hong Kong have seen stock markets advance higher. This positive news for the global economy has encouraged a push higher for the Australian Dollar, which … Continued

eurusd
Euro firm ahead of the ECB (as US Dollar weakens)

EURUSD gains over the past week have primary echoed US Dollar losses, as global financial markets have shifted to a “risk on” mode, with global geopolitical tensions easing. Positive news last week around the US-Sino trade war, Brexit and from Hing Kong have seen stock averages rally, whilst the US Dollar has weakened, having been … Continued


Forex Brokers in your location