From a fundamental perspective，Europe's Stoke 600 and Germany's DAX achieved their best performance in three weeks this week; On Thursday, the German preliminary CPI for November announced an increase of 1.2% year-on-year, exceeding expectations and reaching a five-month peak, which is an encouraging sign for European Central Bank policymakers as well as domestic consumers. At the same time, European Central Bank Vice President Guindos states that the possibility of great regression of the European economy is negligible. Additionally, European import quotas issued to the United States encourages to achieve a more stable market.
 
According to technical analysis, this fluctuation is similar to that half a month ago, which means whether it can breakthrough 1.1000 (0.618 spots)determines the following market tendency. Despite a downside risk, the market is seemingly reversing. There is no sign of the existence of overbought and oversold.

Higher confidence of European market will lead to a rise of EURUSD market

Dec 01 2020

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