Ever since the start of last week, the Euro Stoxx 50 has been just a sigh away from All-Time Highs while the rest of the equity market was booming. Despite that, the asset has been ranging and didn’t manage any continuation of the earlier move.
Euro Stoxx on the Daily Timeframe
From a technical picture, this is a chart which seems geared for new highs. It broke out of this last resistance area and is now successfully bouncing from it. All it takes from this price is one solid up-day to break the old €6,209 ATH.
However, the issue is with the underlying news. The Iran war, after earlier promising talks, again stalled as the Eurozone continues to be hit by the closure of the Strait of Hormuz. It’s creating a delicate balance where AI is driving up stock prices, but the lack of energy flowing through is creating a fragile economy which could suddenly crack.