EURO STOXX 50 index making a bullish impulse with room for more gains within a five-wave cycle from Elliott wave perspective.
A significant reduction was recorded in September 2022 in the surplus of the current account balance in the Eurozone, compared to the corresponding month of the previous year.
In more detail, the current account surplus fell from 33.1 billion euros to 3.8 billion euros, according to data released by Eurostat.
In the services sector, the surplus narrowed to 14.7 billion euros from 15.8 billion euros in the same month last year, while the primary surplus widened to 10 billion euros from 8.2 billion last year. The secondary deficit narrowed to 11.7 billion euros, from 13.2 billion euros recorded in September 2021.
EURO STOXX 50 is presenting the same attitude as the German DAX40 index, which represents the most reliable index in the whole Euro area.
From an Elliot wave perspective, we see index in an impulsive recovery mode after a break above the falling trendline early in November when index jumped 10% in short period of time. If you are familiar with Elliott Wave theory then you know that impulses are five wave patterns, so more gains should follow as we see price now in wave 3. There can be opportunities on the long side after next fourth wave pullback. Support can be near 3826, while upward projection is around 78.6% Fib near 4150.
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