Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Euro Stoxx 50 Forecast: Plunges Into Support

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • The Euro Stoxx 50 fell rather significantly during the trading session on Tuesday, which is not a huge surprise considering that CPI is now below the 2% target that the ECB dictates.
  • So, what this suggests is that perhaps there is a bit of a sluggish outlook for the European economy, and therefore I think we have the reaction that you would expect.
  • Furthermore, in general, we've seen more or less a negative reaction across stock markets around the world and I do think that this pullback, as I said, makes a certain amount of sense not only from a fundamental standpoint, but from a technical one as well.

Looking at the technical analysis we had recently broken out, but then started to reach an area that has had a lot of resistance more than once. With this being the case, the market dropping towards the 4950 euros level makes sense. It was an area that previously had been resistant, and it now looks as if it's offering support. Clearly, this index will go as Germany goes overall and of course France, but at this point in time, I think this was value that needed to be presented. After all, there's no point in chasing the market higher. And we got our first glimpse of that on Monday when the market initially took off to the upside but then closed lower. At this point, it does seem like we're in an area where you would expect a certain amount of market memory and support to come in to push the Euro Stoxx 50 higher.

Euro Stoxx Forecast Today - 02/10: Euro Stoxx Plunges (Chart)

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

This Index Could be Offering Value

This index could be offering value on dips, and I think at this point in time it’s very possible that we could see buyers come back in and start buying. After all, even though the CPI numbers were weaker than anticipated in the European Union, the reality is that the ECB will be more likely to come in and support economic growth in that environment, assuming that this is just a bit of a statistical anomaly, which brings to mind the phrase that “one data point is not a trend make.”

Ready to trade our daily forex forecast? Here are the best CFD stocks brokers to choose from.

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews