СSince mid-February the price of the index EUROSTOXX50 has won back half of the losses of December when ECB expanded QE program in Eurozone; however, according to some market participants the adopted measures were insufficient.
The price fell from 3515.0 to 2700.0, losing over 30%. By the middle of March the price has corrected and grew to 3110.0 (Fibonacci 50%).
However, further rise was difficult and after profit taking on the long positions the traders started to open short positions. Comments by Mario Draghi that further decline in the interest rate of Eurozone might be unnecessary was taken by traders as a signal that monetary policy easing will be terminated in Eurozone.
At the moment the price is near important support level of 3010.0 (Fibonacci 38.2% and ЕМА50 on the daily chart and ЕМА200 on 4-hour chart). Breakout of this level will give chance of the further decline in price to 2960.0 and 2890.0 (Fibonacci 23.6%), 2830.0 and 2700.0 (lows of 2016) in the descending channel on the daily chart with the lower limit at the level of 2600.0.
Support levels: 3010.0, 2960.0, 2890.0, 2870.0, 2830.0, 2790.0, 2700.0 and 2650.0.
Resistance levels: 3110.0, 3135.0 and 3200.0.
Sell Stop: 2990.0. Stop-Loss: 3020.0. Take-Profit: 2960.0, 2890.0, 2830.0, 2800.0, 2700.0, 2650.0 and 2600.0.
Buy Stop: 3060.0. Stop-Loss: 2990.0. Take-Profit: 3110.0, 3135.0 and 3200.0.