Stocks had their first red week after their bullish run for almost a month. Investors have started worrying about the potential second wave of COVID-19. China closed Beijing’s largest fruit and vegetable supply center as well as locked down close districts. Also, the country reported its biggest daily infections increase with 57 news cases. Additionally, 21 US states reported an average daily increase in new cases according to The Washington Post. The Washington State Department of Health warns that the COVID-19 is spreading faster within the state. In the meanwhile, Brazil is now the second-largest country in the world in deaths and WHO worries about the situation there.
EU markets are in negative territory though they have trimmed the earlier losses. DAX is losing 1.17%, CAC40 1.12% and FTSE 100 1.05%. EU imports fell to 5 ½ lows in April by 24.8% as well as Exports dropped to 9 years low by 29.3%. Reviewing the technical picture, GER30 bounced on 61.8% while UK100 reversed on the 38.2% Fibonacci level.
DAX daily chart
UK100 daily chart
Heading to the forex market, EURUSD failed to violate the major resistance zone to the upside we had analyzed in our previous post. USDJPY is still testing 50 SMA from below while USDCAD is heading to a major resistance level at 1.373.
EURUSD daily chart
USDJPY daily chart
USDCAD daily chart 
In focus this week (economic calendar):
Japan – BoJ Interest Rate Decision
UnitedStates – Retail Sales Control Group (May)
UnitedStates – Fed’s Chair Powell testifies
Switzerland – SNB Monetary Policy Assessment
UnitedKingdom – BoE Interest Rate Decision
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