The European stock indices like the STOXX 50 and the STOXX 600 fell by 0.2%. This decline is mainly due to investors reacting to higher-than-expected U.S. inflation figures and anticipating new economic measures from China over the weekend.
Additionally, investors are also keenly observing France’s proposed budget for 2025, which includes plans to cut spending and increase taxes on corporations, wealthy individuals, and energy sectors.
Major Stocks Decline: Bayer, Volkswagen, BMW, and More
Several big names in the stock market experienced declines. Bayer’s shares dropped by 1.1%, and Deutsche Telekom saw a decrease of 0.7%. The automotive industry wasn’t spared, with Volkswagen and BMW shares falling by 0.6% and 0.4%, respectively.
Additionally, Stellantis reported a 1.2% fall after announcing the upcoming retirement of its CEO in 2026.
Qatar Investment Plans $400M Sale of Sainsbury’s Shares
In the retail sector, Sainsbury’s stock plummeted over 4% after its largest shareholder, the Qatar Investment Authority, announced that it intends to sell approximately $400 million shares. Furthermore, Thales shares fell by 2.6% in tech after Berenberg analysts downgraded the stock from “buy” to “hold.”
Despite the daily losses, the weekly overview shows some positives. The STOXX 50 has slightly gained 0.3% this week, while the STOXX 600 remained relatively stable.
EURUSD Technical Analysis – 11-October-2024
FxNews—The EUR/USD currency pair is in a robust bear market, trading at approximately $1.095, testing the July 17 high as resistance. The current bounce has been expected because the Stochastic Oscillator has been hovering inside the oversold territory.
The daily chart below demonstrates the price, support, resistance levels, and technical indicators utilized in today’s analysis.
The 4-hour chart shows the market is bearish because the price is below the 50- and 100-period simple moving averages. But the Awesome oscillator signals divergence in its histogram, approaching the signal line from below, meaning the European currency is poised to clear some of its recent losses against the dollar.
Overall, the technical indicators suggest the primary trend is bearish, but the EUR/USD price has the potential to rise and consolidate near upper resistance levels.
EURUSD Price Forecast – 11-October-2024
The immediate resistance is at $1.09, the October 4 low. From a technical perspective, today’s bullish bias could target the 50-period simple moving average at $1.102 if bulls close and stabilize the price above the immediate resistance.
Please note that the bullish strategy should be invalidated if the EUR/USD price dips below the immediate support at $1.088, the August 8 low.
- Also read: USD/MXN Gains Amid Mexican Inflation Drops
EUR/USD Bearish Scenario
If bears (sellers) close below the immediate support at $1.088, the bearish wave from $1.121 will likely extend and target the April 29, 2024 low.
EURUSD Support and Resistance Levels – 11-October-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $1.088 / $1.08
- Resistance: $1.095 / $1.102 / $1.109