It was just last month that French stocks threatened fresh record highs. But after the political events since last weekend, it has been a torrid week for equities in the region. The CAC 40 index in particular is set for its biggest weekly fall since September 2022, with today adding another 1.2% decline.
The index had already broken below its 100-day moving average (red line) to open the week. And now, it is targeting a test of its 200-day moving average (blue line) next. That’s a key technical level to watch as the last time the index traded below both the key daily moving averages was all the way back in November last year.
A break below the key level will see sellers feel even more vindicated, with the January low near 7,300 being the next plausible target.
This article was written by Justin Low at www.forexlive.com.
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