Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Chief Macro Strategist
Technical Analyst, Saxo Bank
Summary: EuroStoxx50/EU50 in uptrend but rejected at key resistance level
DAX/GER40 broken key resistance but sentiment still negative
EuroStoxx50 is being rejected at the resistance at around 4,235 for a second time. A close above is needed for a move to next strong resistance at around 4,326.
RSI is showing positive sentiment indicating likely higher Index levels but if 4,235 proves too strong to close above EuroStoxx50 could slide back below the 55 Moving Average and the falling trendline
A close below 4,133 the down trend will resume
EU50 cfd testing resistance at around 4,234. A close above could lead to a rally to 4,300-4,334
DAX closed last week above key resistance at around 15,280 only to be rejected at the 55 Moving Average. The Index seems to be struggling getting upside momentum with RSI is still showing negative sentiment. A close above the 60 threshold will confirm then uptrend that is under development.
Strong resistance at around 15,575 where the 100 and 200 Moving Averages are coming down adding to the resistance strength.
A close below 15,152 the downtrend will confirm