Euro Stoxx 50 Forecast: Bulls Aim Higher on Improving Global Risk Appetite
What's on this page
EU50 Index Price Forecast:
- Bulls look to continue momentum on Euro Stoxx 50 index price action
- Technical signals improving but recent multi-month high faces test
- Fundamentally unstable backdrop leaves price action susceptible to headlines
The Euro Stoxx 50 index appears to be in a strong position headed into the rest of this week as global risk appetite returns on news of a proposed infrastructure stimulus bill out of the United States. Price action since Monday’s open is nearly 3% higher for the index and appears set to take advantage of the bullish risk-on environment seen across global markets.
EU 50 Index (15-Min Price Chart)
Source: IG Charts
Currently, the index sits at 3236.74, directly under its 61.8% Fibonacci retracement level. This follows Monday’s price action where the index pivoted higher after touching its 50% retracement level intraday before price action rallied to close Monday’s session higher. Bulls will look to continue probing higher in the coming days and aim for the recent multi-month high recorded last Monday at 3399.04 when the index briefly rose above its 200-day moving average.
EU 50 Index (Daily Price Chart)
Source: IG Charts
While a break above the previously mentioned multi-month high would put the index in a better position for bulls technically, the fundamental backdrop is still delicate and trader sentiment seems fragile to changing headlines. Furthermore, a breakdown at this level would likely sap bullish sentiment and allow bears to retake positive price action claimed earlier this week.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.