Market Review 11 May 2020

by Constantinos Loizou

  • In today’s Economic calendar we can expect to see some volatility in the EUR and USD.
  • At 08:00 (GMT), Yves Mersch, member of the Executive Board of the European Central Bank, will give a speech regarding the future monetary policy.
  • At 16:00 (GMT), Raphael Bostic, President and CEO of the Federal Reserve Bank of Atlanta, will give a speech also regarding the future monetary policy.

 

Global Indices Last week:

  • Dow Jones 30: +4.21%
  • S&P 500: +5%
  • Nasdaq 100: +7.08%
  • EURO 50: +0.50%
  • DAX 30: +1.38%
  • IBEX 35: -2.80%
  • MIB 40: -1.16%
  • FTSE 100: +4.16%

 

On the charts

  • As we can observe on the DAX 30 daily chart, the price is now at 10,941
  • The price formed an upward trendline (blue) which has been broken the last week
  • The price reacted on the 23.6% Fibonacci Retracement Level (7935 – 11342) and bounced back to the upside to retest the upward trendline
  • The RSI is on 56, but the last few days it’s moving sideways
  • If the price reacts on the blue trendline we might see it moving lower to retest the 10,550 (23.6% Fibonacci Retracement Level) or lower to 10,000, a price level which consists the 38.2% Fibonacci Retracement Level and an inside support