Forex Daily Analysis: May 11, 2021 - Stock Market Crash in Europe

The daily forex analysis on May 11, 2021 this time will discuss the weakening of the Euro, especially against the US Dollar in market trading last Monday caused by the fall of the stock market and other risk assets in Europe. In addition, the limited weakening of the Euro against the US Dollar is also due to concerns among market participants regarding the increasing number of new Covid-19 cases in Asia. For today's market movement, it is expected that EURUSD will try to rebound from yesterday's weakness. Economic data that will be released today at 16:00 WIB, namely the ZEW survey agency, plans to release economic sentiment data from Germany and other European countries for May. EURUSD will move higher if the economic sentiment of Germany and the Euro is released higher than the forecast and the previous period. The US Dollar currency is moving weaker compared to other major currencies, this US Dollar weakness has touched its monthly low, about 2-1/2 months to be precise. The weakness of the US dollar is due to the forecast of market participants on Monday, they predict that with the increase in inflation, it will cause a weakening of the value of the currency. With the rising inflation rate and supported by the US Central Bank's policy to maintain interest rates and continue its stimulus program, it is further weighing on the US Dollar. After the NFP report and the release of the rising unemployment rate, it further gives confidence in the market that the Fed will still maintain its low interest rate and will continue to buy assets despite the continued rise in inflation. The focus of market participants this week is on the release of data on prices of goods and services at the consumer level (CPI) which will be released on Wednesday. As well as sales data at the retail level (Retail Sales) which will be released on Friday. If the two data are released above the prediction, it will strengthen the US Dollar and vice versa.

Daily Predictions

Today's FOREX prediction on the EURUSD pair is expected to weaken/fall and the recommended OP (Open Position) is SELL at the level of 1.21200. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points.
This the daily analysis of forex on May 11, 2021 regarding the fall of the stock market in Europe. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.