Market Analysis: EURO STOXX 50 Hits 2-month Low

FXOpen

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.

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