Market Review 29th April 2021

by Charalambos Constantinides

• EURUSD consolidated above 1.2050 price area this week finding Support above the 200 Day Moving Average and Resistance below the valid downward trendline formed from the top on January 6th 2021. The RSI is in bullish area above the mid-point 50 confirming the Euro strength for the moment, registering consecutive higher closings for the past 3 weeks. Following the FOMC dovish announcement and the interest rates that remain unchanged the price broke above the valid trendline, signalling a continuation of the uptrend. The bullish trend is confirmed by the MACD indicator that is in positive area and the Signal MACD remains crossed above the MACD line. Resistances above the price action are 1.618 Fibonacci extension level at 1.2165 and also 1.2243 and the 1.2350 price levels derived from previous tops.

• The only worthwhile news for EU Economic Area for Thursday is the German Preliminary CPI (Consumer Price Index) and the German Unemployment change related to the European Unions’ biggest Economy. The European Parliament overwhelmingly supported the post-Brexit trade deal between Britain and the European Union, clearing the way towards its ratification. British exports to the EU fell by 47% in January-February and imports by 20%, an indication that may weaken the British Pound vs the Euro.

• At 07:55 (GMT) the announcement of the German Unemployment change is due for the month. Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health.

• A number of blue-chip European companies released quarterly earnings this week including Santander, Lloyds, Deutche Bank and Sanofi with the results being generally positive.

European indices yesterday :

• DAX: +0.28%
• EURO: +0.08%
• MIB: -0.06%
• CAC: +0.53%