French macro data continues to underwhelm. The Services PMI fell to 48.5 in July (from 49.6), while the Construction PMI dropped further to 39.7 (from 41.6), dragging the S&P Global Composite Index to 48.6. These readings confirm ongoing pressure in key segments of the French economy.

Bond yields have entered a fresh consolidation phase this week. The 10-year yield has risen to 3.321% from last week’s 3.281%; the 20-year to 3.880% (from 3.832%); and the 30-year to 4.142% (from 4.093%). Market participants are watching for further volatility.

CAC 40: Testing the upper boundary of consolidationCAC 40: Testing the upper boundary of consolidation

On the performance side, Edenred SA (+2.94%), Pernod Ricard SA (+2.42%), and Accor SA (+1.88%) are leading the gains, while Eurofins Scientific SE (–3.00%), Sanofi SA (–2.88%), Capgemini SE (–2.25%), and EssilorLuxottica SA (–1.42%) top the list of decliners.

Technical Analysis: Support and Resistance

On the daily chart, CAC 40 remains in a corrective phase, edging away from the resistance line of the recently established horizontal channel (7975.0–7535.0). Technical indicators retain a bearish bias: the fast EMAs of the Alligator indicator are consolidating, and the AO histogram, while below the midline, is drawing new corrective bars.

  • Support: 7535.0, 7240.0
  • Resistance: 7730.0, 7975.0

Trading Scenarios

  • Sell stop: Enter short positions below 7535.0, targeting 7240.0. Stop loss: 7620.0. Time frame: 7+ days.
  • Buy stop: Go long above 7730.0, targeting 7975.0. Stop loss: 7650.0.

Summary: The CAC 40 is consolidating in a broad trading range, with market direction hinging on US-EU trade dynamics and France’s macro outlook. Traders should monitor key levels—7535.0 and 7730.0—for potential breakout or further correction.