Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
EuroStoxx 50 bounced from the 1.382 projection at 4,674 resuming and likely extending uptrend with potential to 4,805
However, there is still RSI divergence indicating the current bullish trend is stretched and in exhaustive mode.
A close below 4,674 could quite likely initiate a correction down to around 4,568
EU50 cfd levels. A break below 4,674 could fuel a sell-off down to around 4,593
DAX jumped higher from the opening but has since been sliding back in to the range bound area 17,050-16,821. The latter is the key support at around 16,821, and close below is likely to fuel a sell-off/correction down toa round 16,500-16,400.
A close above 17,050 the bullish trend is likely to resume with potential to 17,250-17,500