By IFCMarkets
Weak French data bearish for FR40
French economic data in the last couple of weeks were mixed. The Q4 GDP final reading confirmed economy contracted 0.1% over quarter in the fourth quarter of 2019, following a 0.3% growth in the previous three months. Retail sales growth declined to 2.1% over year in January after 2.5% increase in previous month. However, the private sector activities expansion speeded up a bit: final reading of Markit’s composite PMI was revised up to 52 in February after 51.1 reading for previous month. At the same time manufacturing sector recorded a decline in activities, the first contraction in seven months due to decline in new orders attributed to discontinuation of Boeing 737 Max production and coronavirus disruptions. The coronavirus impact will likely last at least a few weeks as the outbreak was designated a global pandemic on Wednesday and the US restricted travel from Europe for 30 days. Deteriorating economic data are bearish for FR40.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Sell | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Summary of technical analysis
| Order | Sell |
| Buy stop | Below 3911.29 |
| Stop loss | Above 4956.83 |
Market Analysis provided by IFCMarkets
