EURUSD Technical Analysis: EU Stock Growth
Reuters – The European stock market witnessed an impressive upswing last week. The overall growth was approximately 1%, signaling a positive trend in the market. Notably, the STOXX 50 index, a key indicator of market performance, soared to a 14-week high, reaching 4,340 points. Similarly, the STOXX 600, another significant index, climbed to an 8-week high at 455 points. This surge is primarily attributed to the widespread belief among investors that the era of increasing interest rates by major central banks is likely coming to an end.
Corporate Performance Fuels Optimism
Two major corporate announcements further fueled this optimism. Firstly, the Italian insurance giant Generali made headlines with a remarkable nearly 30% rise in its 9-month adjusted net profit. This financial leap not only signifies the company’s robust performance but also reinforces its commitment to achieving its 2024 financial goals. Secondly, the London Stock Exchange Group (LSEG) shared some uplifting news. LSEG announced a significant adjustment to its mid-term growth predictions, suggesting a more optimistic future. Additionally, the group unveiled an ambitious £1 billion share buyback program, reflecting confidence in its financial health and future prospects.
EURUSD Technical Analysis
The EURUSD currency pair experienced a rise from the 1.083 pivot point, aligning with expectations. The Average Directional Index (ADX) is currently above the level of 30, demonstrating the strength of the bullish market. The next target for the EURUSD bulls is the R1 resistance level, which stands at 1.1. This target is attainable if the price can sustain itself above the pivot point.