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Euro Stoxx 50 remains above high-level price and 13-day exponential average support at 3506/3492 and is now surging intraday above 3532 – the 78.6% retracement of the Q1 collapse, an eventual clear closing break of which should see resistance next at 3595/96, per Credit Suisse.

Key quotes

“Despite the poor momentum picture and bearish divergence, a solid close above 3532 would be an important trigger to add further fuel to the rally we are expecting in December. We would then see resistance next at the 3595/96 December 2019 low and late February reaction high, before 3641/42, the ‘neckline’ of the pandemic top back in January/February.”

“Imminent support is seen at 3539/32, then the 13-day exponential average at 3509/06, and with 3492 ideally holding to keep the current rally going, which remains our base case.”