According to the latest information, during the first round of the presidential elections in France, Emmanuel Macron won 23.9% of the vote, the second among - Marine Le Pen with 21.4%.
The Euro Stoxx 50 had been actively growing since the beginning of December, and began to decline in April ahead of the presidential elections in France. Having opened with a gap up, the EuroStoxx50 index today broke through an important resistance level of 3515.0 (the Fibonacci level is 100% correction to the wave of decline since December 2015) and exceeded this level by 50 points.
At the beginning of today's European session, the EuroStoxx50 index trades near the level of 3568.0 (the upper limit of the ascending channel on the daily chart).
Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts turned to long positions. If the positive dynamics continue, the EuroStoxx50 index will continue to rise in the uplink on the weekly chart, the upper limit of which runs near the level of 3680.0 (July highs of 2015).
An alternative scenario for the decline of the index will be linked both to the outcome of the second round of elections in France, if Marine Le Pen wins, or to the position of the ECB, if the bank signals for the curtailment of the QE program in the eurozone. In this regard, it is worth paying attention to the meeting of the ECB, which will be held on April 26-27. If during the next press conference (starts on Thursday 12:30 GMT) ECB President Mario Draghi will only hint at the possibility of starting the curtailment of the QE program in the eurozone, the European stock indexes will react with a decrease.
The signal for opening of the medium-term short positions on the EuroStoxx50 index will be a breakdown of the support level 3400.0 (EMA50 and the lower limit of the ascending channel on the daily chart). In this case, the reduction targets will be support levels 3325.0 (January highs), 3240.0 (EMA200 on the daily chart).
Positive dynamics are maintained
While the EuroStoxx50 index is above the levels of 3240.0, 3200.0 (Fibonacci level 61.8% correction to the wave of decline since December 2015). Support levels: 3515.0, 3400.0, 3325.0, 3300.0, 3240.0, 3200.0 and resistance levels: 3578.0, 3600.0, 3680.0
Trading recommendations
Sell Stop 3510.0 Stop-Loss 3560.0. Take-Profit 3470.0, 3400.0, 3325.0, 3300.0, 3240.0 Buy Stop 3585.0. Stop-Loss 3545.0. Take-Profit 3600.0, 3680.0, 3700.0
