European stock market indices are trading under pressure for another day in a row. While indices managed to recover a bulk of initial post-elections slump yesterday in the afternoon, selling pressure returned today. Political factors remain in play.
French President Macron announced that he will hold a press conference on Wednesday this week. Some French media began to hint that he has discussed a potential resignation in the event of the upcoming snap elections being another failure for his party, and that the press conference may be somewhat related. This has triggered another downward impulse on EUR and European indices. However, those suggestions were quickly rejected with Bloomberg reporting, quoting people close to French president, that Macron has not discussed resignation and that tomorrow's press conference is aimed at setting out a campaign to the parliamentary elections. Indices began to trim losses after this denial.
Taking a look at DE40 chart at H1 interval, we can see that the index slumped today and made another test of an 18,400 pts support zone, which has halted yesterday's sell-off. So far, it looks like declines have been halted there. 14-period RSI indicator dropped to the 30.0 area - a level often associated with local lows (orange circles).
Source: xStation5
