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Market Review 5th May 2021

May 5, 2021 (10:00)

by Elina Nikolova

EURUSD traded last week at a high 1.2150 price area this week before taking a breather which led to it dropping to the 1.2000 area on Tuesday. The dollar tried to extend its rally vs the euro following rumors about the possibility of higher U.S. interest rates and a sell-off in tech stocks but without success so far remaining in neutral area. The price action crossed below the 100 day Moving Average at price 1.2050. The MACD indicator is showing signs of weakness as the Signal MACD crossed below the MACD line. A break below the important support at 1.1988 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 return of the price above the 100 day Moving average may signal continuation of the uptrend observed in the past few weeks. Important resistance points include 1.2050 (100 day ma) and 1.2150

• The news for EU Economic Area for Wednesday include the Spanish Unemployment Change, the German, French, Spanish and Italian Services PMI’s and the EU Markit Composite PMI. According to the EU Economic Commissioner, the European Commission may increase its growth forecast for the euro zone for 2021 when it issues new economic projections in May.

• At 07:00 (GMT) the announcement of the Spanish Unemployment change is due for the last month of April. This measures the change in the number of unemployed people during the previous month.

• At 07:15 GMT the Spanish Services PMI is due, followed by the Italian Services PMI at 07:45 GMT, the French at 07:50 GMT and the German Services PMI at 07:55 GMT. These surveys include ratings of the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

• At 08:00 GMT the EU Markit Composite PMI is due. The PMI monthly Composite Reports on Manufacturing and Services are based on surveys of over 300 business executives in private sector manufacturing companies and also 300 private sector services companies.

• At 09:00 GMT the EU Economic Forecasts will be announced. This report includes economic forecasts for EU member states over the next 2 years, and covers about 180 variables and are released quarterly.

European indices yesterday :

• DAX: -2.38%
• EURO: -1.87%
• MIB: -1.76%
• CAC: -0.89%

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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