EUR/USD analysis for May 10
Looking at the chart on the daily time frame, we see that the EUR/USD pair, after consolidation around the top line of this channel, made a break above it. We are now monitoring whether the continuation of this consolidation will continue to be on the bullish side. Looking at the Fibonacci retracement level, we see that we made a very significant break above 61.8% Fibonacci level at 1.21000. The positive continuation of the trend leads us to a 78.6% level at 1.22100, with the next look at the previous high at 1.23495.
For a possible bearish scenario, we need a pull below the upper channel line, 61.8% Fibonacci level, and a negative setting of moving averages that should move to the upper, bearish side. For now, we do not have such a scenario on the chart. Looking at the MACD indicator, we have a bullish signal since the beginning of April. Now we have another confirmation and the intersection of the MACD line with the signal line to reaffirm the bullish trend.
Eurozone investor confidence improved to its highest level in more than three years in May, suggesting that the recession caused by the coronavirus has been overcome, the results of Sentik’s research showed on Monday.
The investor confidence index rose significantly to 21.0 in May from 13.1 in April. The result was the highest since March 2018. It was predicted that the reading would rise moderately to 14.0.
The current assessment, as well as expectations, strengthened in May. The current index of the situation reached 6.3, the highest since May 2019, compared to -6.5 in the previous month.
At the same time, the index of expectations reached the all-time maximum in May of 36.8, compared to 34.8 a month ago.
French Health Minister Olivier Veran said that France is starting to consider easing the restrictions on the virus as vaccinations begin to accelerate in recent weeks. The number of virus cases has also eased slightly since April, but much progress is still needed before any reopening.
Germany reports 6,922 new cases of coronavirus, and in the last update, 54 people died today. The lower figures associated with daily cases and deaths are mostly the result of less testing over the weekend. Still, a drop in the seven-day incidence is a key element of this update, confirming that the virus situation is improving somewhat.
