Euro Stoxx 50: Back under pressure, further losses on a close below 3150 – Credit Suisse

Euro Stoxx 50 has fallen sharply, near 2% down on a day to 3237, with support seen at the 63-day average and the important end of June low at 3170/50, which if broken would trigger a top, economists at Credit Suisse apprise.

Key quotes

“Euro Stoxx remains capped by its 200-day average, currently seen at 3349, and has fallen sharply below 3277 in today’s open, which keeps the immediate risk lower within this range, with support seen next at 3241, ahead of the 63-day average and the important end of June low at 3170/50. Despite the current weakness, only a close below here would be seen raising the prospect of a more important turn lower.” 

“Resistance is seen at 3281 initially, with the immediate risk seen lower in the range whilst below 3311/17. Only a close back above the 200-day average at 3349 though would be seen reasserting an upward bias with resistance then seen next at 3380, then 3401.”