EU50 Analysis: Improving data bullish for EU50

August 14, 2020

By IFCMarkets.com

Improving data bullish for EU50

Euro-zone economic data in the recent couple of weeks were positive on balance. While industrial production increase in June was not as steep as expected, the retail sales growth of 1.3% over year was above an expected decline of 0.5%. Both manufacturing and services sectors resumed expanding in July according to Markit’s manufacturing and services PMIs reports, and construction sector contraction slowed as evidenced by construction PMI reading of 48.9 after 48.3 in June. Readings above 50.0 indicate industry expansion, below indicate contraction. Improving data are bullish for EU50. On the other hand, second estimate of Q2 GDP report will be published today at 13:00 CET, and a steep drop in gross domestic report is expected. Worse than expected GDP report is a downside risk for EU50.

Indicator VALUE Signal
RSI Neutral
MACD Buy
Donchian Channel Neutral
MA(200) Buy
Fractals Neutral
Parabolic SAR Buy

 

Summary of technical analysis

Order Buy
Buy stop Above 3380.50
Stop loss Below 3156.91

Market Analysis provided by IFCMarkets.com

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