Two Trades To Watch: EU Stoxx 50, EUR/USD - Tuesday, Jun. 8

Euro Stoxx 50 hovers around all time high, EUR/USD trades below 1.22 amid bearish signals. German ZEW sentiment data & Eurozone GDP in focus (EZU).

EuroStoxx 50 hovers around all time high 

Euro Stoxx 50 hit a fresh post pandemic high on Monday amid a continuation of Friday’s NFP inspired rally. 

Today trading is more subdued after an indecisive session on Wall Street. 

Shrugged off news of the G7 global corporate tax deal and its potential impact on earnings. 

Improved outlook as lockdown restrictions ease is boosting automobile & banking stocks. 

Eurozone GDP 3rd reading due today however main focus will be on US CPI & ECB on Thursday. 

Where next for Euro Stoxx 50? 

Euro Stoxx 50 trades within an ascending channel dating back to early November. It trades above its 50 & 100 daily ma in an established bullish trend. The MACD is supportive of further upside. 

The index took the key psychological level 4000 in early April and was consolidating between 3950-4050 until the end of May when it started to push higher again. For now, it trades just below the mid point on the ascending channel around 4100. 

Buyers will be looking for a a breakout above 4100. It would take a move below 4000 the psychological level and 50 sma to negate the near term uptrend and a move below 3950 to move below the ascending channel. 

EUR/USD trades below 1.22 ahead of German ZEW sentiment data & EZ GDP 

EUR/USD trades mildly lower after two straight sessions of gains amid subdued mood in the market. 

German industrial production unexpectedly declined in April by -1% MoM, down from 2.2% increase in March and worse than the 0.5% rise forecast.  

Eurozone Q1 2021 GDP is expected to confirm -0.6% QoQ and -1.8% YoY. 

German ZEW sentiment data expected to tick higher to 85.3, up from 84.4 

USD trades subdued, holding above 90.00 as investors look ahead to CPI data 

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