Euro Stoxx 50: Weekly close below 3608 to open the door for a further setback toward 3500/3492 – Credit Suisse

Euro Stoxx 50 is already seeing a concerted test of the 38.2% retracement of its entire 2020/2021 bull trend at 3608. A weekly close below here would reinforce the downtrend even further toward 3500/3492, analysts at Credit Suisse report.

Immediate resistance is seen much lower in a cluster between 3630 and 3700 

“Euro Stoxx 50 is now undergoing a concerted test of next key support at the 38.2% retracement of the entire 2020/2021 bull trend at 3608. A weekly close below here would be seen to keep the risk directly lower with support seen next at 3500/3492, which is the 61.8% retracement of the rally from October 2020. With 2021 low just below at 3473, we would look for an attempt to hold here at first.” 

“Immediate resistance is seen much lower in a cluster between 3630 and 3700 and then more important yesterday’s hourly charts lows at 3721/27 and then the recent short-term hourly chart consolidation highs at 3839/50”.