Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
Summary: AEX25 and CAC40 still hanging on to key supports. BEL20 is downtrend testing supports potential
AEX25 In the broader picture AEX is still range bound between 772 and 735 with the latter as a key support. A close below 735 the RSI will also close below 40 i.e., confirm a downtrend with down side potential short-term to around 700. Some support at around 712-707
To reverse this bearish picture a close above 3,900 is needed. First indication of this to play out would be a close a of the gap from Thursday
CAC40 is testing key support at around 7,187 and the rising trendline. A close below both could fuel a sell-off down to next support at around 6,946
If this bearish scenario play out a close above 7,401 is needed to reverse it.