Euro Stoxx 50 Outlook: Approaching Inflection Point as Optimism Reigns
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Euro Stoxx 50 Price Analysis & News
- Euro Stoxx 50 Approaching Inflection Point
- Market Optimism Reigns Supreme
- Unity Over EU Recovery Fund Needed to Extend Gains
Euro Stoxx 50 Approaching Inflection Point
Market optimism remains rife as vaccine hopes and the Franco-German recovery fund proposal continues to support equity markets. In turn, the Euro Stoxx 50 has managed to largely hold onto its recent gains above 2900. However, as risk sentiment remains relatively robust the index is approaching an inflection point.
Unity Over EU Recovery Fund Needed to Extend Gains
Previously the Euro Stoxx failed to consolidate above 3000, having rejected the 50% fib at 3053, and thus the index maintained its range. While the weak macro backdrop is here to stay, market optimism reigns supreme for now. That said, for a firm break above 3000 we suspect greater cohesion over the EU recovery fund proposal would be needed. However, with the likes of Austria somewhat skeptical of this proposal, unity may be somewhat hard to come by, which in turn may see the Euro Stoxx 50 capped at key resistance yet again.
Euro Stoxx 50 Price Chart: 1-Hour Time Frame
Euro Stoxx 50 Price Chart: Daily Time Frame
--- Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.