Positive French data bullish for FR40
French private business sector expansion was better than expected. Will the FR40 advance continue?
Recent French economic data were better than expected after weak June industrial production and balance of trade data: manufacturing sector expansion resumed in August, and services sector expansion picked up pace according to final reading of Markit’s manufacturing and services PMIs. Output and new orders rebounded in manufacturing, and new business grew in services sector at the strongest pace in nine months. These contributed to accelerating of expansion in private sector activity, as evidenced by increase of Markit’s composite PMI to 52.9 from 51.9 in July. Positive French data are bullish for FR40.
On the daily timeframe FR40: D1 is retracing higher after hitting 3-month low in the end of May, and has risen above the 50-day moving average MA(50).
Technical Analysis Summary
Order Buy
Buy Stop Above 5501.51
Stop loss Below 5259.98
French private business sector expansion was better than expected. Will the FR40 advance continue?
Recent French economic data were better than expected after weak June industrial production and balance of trade data: manufacturing sector expansion resumed in August, and services sector expansion picked up pace according to final reading of Markit’s manufacturing and services PMIs. Output and new orders rebounded in manufacturing, and new business grew in services sector at the strongest pace in nine months. These contributed to accelerating of expansion in private sector activity, as evidenced by increase of Markit’s composite PMI to 52.9 from 51.9 in July. Positive French data are bullish for FR40.
On the daily timeframe FR40: D1 is retracing higher after hitting 3-month low in the end of May, and has risen above the 50-day moving average MA(50).
- 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 RSI oscillator is above 50 level but has not reached overbought zone.
Technical Analysis Summary
Order Buy
Buy Stop Above 5501.51
Stop loss Below 5259.98