During the first 3 days of this week, the price of EURO STOXX 50 (SX5E) has fallen by more than 3%.
This was facilitated by:
→ lower oil prices on the eve of the OPEC+ meeting scheduled for June 4. The Saudi oil minister urged market speculators to "be careful”;
→ uncertainty about the US debt ceiling. While a deal has been tentatively reached, it has yet to be officially approved by the Senate. There are only a few hours left;
→ reduced shares of European companies producing luxury goods due to falling demand;
→ disappointing data from China (we wrote about it yesterday), with which Europe is actively trading.
After conducting a technical analysis of the EURO STOXX 50 chart, we can assume that the decline may slow down, because:
→ SX5E price action shows that the 4,222 level, which served as an important resistance in March, now seems to be working as support;
→ support can also be provided by the lower line of the local downlink (shown in red).
→ the lower line of the long-term ascending channel (shown in blue) can give confidence to the bulls.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.