Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank
DAX. Over the past few weeks, DAX has been sliding slowly lower towards the support at around 18,191 but kept itself above the 55 daily moving average. A daily close below 18,191 could fuel a sell-off down to around 17,875, potentially down to 17,620 strong support.
A daily close above 18,785 is required for DAX to establish a new uptrend with upside potential to 19,250–19,300.
RSI is still showing positive sentiment but has also been warning about bullish trend exhaustion for quite some time.
EuroStoxx50 is trading in a tighter and tighter range. Breakout is needed.
A close above 5,082 is likely to send the index to new all-time highs towards 5,200.
A break (close likely not needed) below 4,942 is likely to push the index to test the key strong support at around 4,888. A daily close below 4,888 could fuel a sell-off down to around 4,800.
RSI is still showing positive sentiment, indicating breakout of the range is likely going to be to the upside. A close above the 60 threshold will confirm the bullish scenario with new all-time highs