Positive French data bullish for FR40

French retail sales increase and private business sector expansion were better than expected. Will the FR40 advance continue?

Recent French economic data were better than expected after February inflation preliminary report: manufacturing sector expansion picked up pace in February with services sector also recording an expansion following a contraction in January, and retail sales in January rose 2.3% over year after 1.2% increase in December. At the same time consumer inflation edged up: headline inflation ticked up to 1.3% in February from 1.2% the previous month. Positive French data are bullish for FR40.

FR40

On the daily timeframe FR40: D1 is retracing higher after hitting 27-month low in the end of December 2018, and has risen above the 200-day moving average MA(200). The price is rising after breaching above the Fibonacci 61.8 level. These are bullish developments.

  • The Parabolic indicator has formed a buy signal.

  • The Donchian channel indicates uptrend: it is tilted up.

  • The MACD indicator is above the signal line with the gap widening. This is a bullish signal.

  • The Stochastic oscillator is approaching the overbought zone but has not yet breached into it.

We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 5357.37. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower fractal at 5219.87. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (5219.87) without reaching the order (5357.37) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

Position

Buy

Buy Stop

Above 5357.37

Stop loss

Below 5219.87

 

 

 

 

 

 

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD holds steady above 1.1200 ahead of Big week

EUR/USD remains trapped n a tight range above the 1.12 handle, lacking a clear direction amid broad-based US dollar strength and increased nervousness heading into Thursday's ECB policy decision.

EUR/USD News

GBP/USD drops further towards 1.2450 on fresh UK political woes

The GBP/USD pair drops further towards 1.2450 region, as the pound remains pressured, with likely Tory MPs resignations, as Johnson's leadership looks almost certain. Focus on Tuesday's UK election outcome.

GBP/USD News

USD/JPY bulls eyeing a sustained move beyond 108.00 handle

The USD remains supported by tempered Fed rate cut expectations. Escalating geopolitical tensions do little to hinder the positive move.

USD/JPY News

UK Politics, ECB Decision Highlight Week Ahead

We come into the new week, with currencies thinking about building some momentum against the US Dollar, after initially trading down in the early portion of last week, before recovering in the latter half.

Read more

Gold: Consolidates in a range around 50% Fibo. level

Meanwhile, technical indicators on the 1-hourly chart have already started recovering from the negative territory and maintained their bullish bias on 4-hourly/daily charts, supporting prospects for some renewed up-move amid escalating geopolitical tensions in the Middle East.

Gold News

Majors

Cryptocurrencies

Signatures