Review and dynamics
Index EuroStoxx50, failed to continue uptrend, caused by the decisions of the two world largest Central Banks – the US Fed and the Bank of Japan. Yesterday's breakout of the important level of 3034.0 (ЕМА200 on the daily chart), seems to be false. With the opening of today's European session, the index EuroStoxx50 index is declining. Now, it is at the level of 3034.0. Traders shall remember today that it is the last trading day of the week, which often involves profit-taking and closure of the positions.
If the decline in global stock markets gains momentum, the nearest target of the EuroStoxx50 index will be support levels of 3010.0 (Fibonacci 38.2% to the decline since December 2015 and ЕМА144 on the daily chart) and 2995.0 (ЕМА200 on 4-hour chart and ЕМА50 on the daily chart).The decline in the index EuroStoxx50 can continue up to the levels of 2935.0 (lows of September and the lower line of the ascending channel on the daily chart) and 2890.0 (Fibonacci 23.6% and the lows of August) or even to the lows of the year at 2700.0.
As an alternative scenario the index can grow to the upper limit of the ascending channel on the daily chart and level 3110.0 (Fibonacci 50.0%) and 3150.0 (highs of 2016). The rise above the level of 3200.0 (Fibonacci 61.8%, ЕМА200 on the weekly chart) will show termination of the downtrend.
The key level for determining future movement is the level of 3034.0 (ЕМА200 on the daily chart). The indicators OsMA and Stochastic give mixed signals. On the daily chart the indicators give signals to buy, while on the weekly and 4-hour charts they suggest to open short positions.
Support levels: 3010.0, 2995.0, 2978.0, 2950.0, 2890.0, 2845.0 and 2700.0.
Resistance levels: 3046.0, 3110.0 and 3150.0.
Sell on the market. Stop-Loss: 3045.0. Take-Profit: 3010.0, 2995.0, 2978.0, 2950.0 and 2890.0.
Buy Stop: 3045.0. Stop-Loss: 3025.0. Take-Profit: 3040.0, 3046.0, 3110.0, 3150.0 and 3200.0.
At the level of 3034.0
In the descending channel