Red lines- bearish channel
Blue lines- Fibonacci retracement levels
Eurostoxx50 index is trading around 4,185. In our last analysis on this index we mentioned that a double bottom around the 38% Fibonacci retracement support will most probably lead to a bounce towards the upper channel boundary. The Eu50 index is now challenging the bearish channel resistance. After three strong bullish days, price is very close also to the latest lower high at 4,236. A break above this level will be a bullish signal. A rejection at current levels will be a bearish signal and could lead the index to making a new lower low.
