News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • US Indices are struggling again today. The Nasdaq is now down 10% from the record highs of mid February, entering correction territory. The $VIX has risen to its highest level since last week's bond market event. DOW -1.31% NDX -2.37% SPX -1.48% RUT -2.68% $DIA $QQQ $SPY $IWM https://t.co/VKbWrCcymL
  • #Bitcoin battle-lines drawn. . . Updated 240min $BTCUSD https://t.co/epcJWYYoQh https://t.co/duPBPAM0Ps
  • Overall, Powell sticks with the current Fed stance and hence the move with the USD and UST yields higher, while gold tests 1700 https://t.co/78ds2uS2i9
  • #Gold is hitting fresh nine-month low in the aftermath of Fed Chair Powell's speech, falling to currently trade right around $1,700 for the first time since June of 2020. $XAU $GLD https://t.co/6OJ5Fn4Kn8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.38%, while traders in Germany 30 are at opposite extremes with 70.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Lgws7z82Gc
  • $Silver testing confluent support, trendline + 23.6 fibo $SLV $XAG https://t.co/UTHhXzPS1v
  • $EURUSD tripping back down to the 1.2000 level on these Powell comments https://t.co/SAAMVbJtpe https://t.co/NXBumuo4qA
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 5.61% Gold: -0.15% Silver: -0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ssjMeko9zk
  • $DXY US Dollar Index spiking to session highs on the back of this move in yields. $EURUSD tumbling down to the 1.2000-level. https://t.co/ZPADmoQfHe
  • The gold breakdown is now testing the first major hurdle at downtrend support early in the month and we’re on the lookout for possible inflection into this region. Get your $XAUUSD technical analysis from @MBForex here:https://t.co/oBxtJDJIT9 https://t.co/o1qKrWbCXT
DAX 30, CAC 40, FTSE 100 Forecasts for the Week Ahead

DAX 30, CAC 40, FTSE 100 Forecasts for the Week Ahead

Peter Hanks, Strategist

DAX 30, CAC 40, FTSE 100 Price Outlooks:

  • The DAX 30 has failed to surpass the September high and could pullback if the October peak is broken
  • The CAC 40 enjoys open air but gains have slowed and support has come under fire
  • Despite a plethora of fundamental factors, the FTSE 100 enjoys an encouraging technical outlook

DAX 30, CAC 40, FTSE 100 Forecasts for the Week Ahead

European indices enjoyed massive gains in November that helped them recoup losses suffered during the coronavirus pandemic. After surging higher in quick fashion, the DAX 30 and CAC 40 have entered into a period of consolidation as they await catalysts for the their next move.

Advertisement

While the longer-term trend of the indices remains higher in my view, the German and French equity indices have seen gains slow and support tested which has left them vulnerable to deeper pullbacks before continuing higher.

DAX 30 Price Forecast

The DAX 30 has had trouble breaking its September high – around 13,460 – and has retreated to support near 13,185 as a result. The German equity index is seemingly caught between its September high and October high as it awaits a catalyst to continue in either direction. Recent consolidation has also created an ascending channel which could also look to influence price in the shorter-term.

DAX 30 Price Chart: 4 - Hour Time Frame (September 2020 – December 2020)

dax 30 price chart

How to Trade Dax 30: Trading Strategies and Tips

Since the longer-term trend is higher, it seems the DAX 30 is tilted upwards for the time being. Still, a lack of progress to the topside should not go unnoticed. A break beneath the October high could open the door to deeper consolidation which might allow the index to test subsequent support around the Fibonacci level at 12,960.

Germany 30 BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -21% 1% -7%
Weekly -39% 33% -1%
What does it mean for price action?
Get My Guide

CAC 40 Price Forecast

The CAC 40 finds itself in a similar situation. Recent gains have seen the French index notch its highest levels since February but progress has slowed around the 5,630 area. Much like the DAX, the CAC 40 has sought support following the failed attempts higher, with the French index finding assistance around the Fibonacci level at 5,510.

France 40 BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -14% 9% 0%
Weekly 7% 19% 15%
What does it mean for price action?
Get My Guide

Attacks on the level have become increasingly frequent and a break lower could open the door for bears to test secondary support around the November swing low of 5,315. Tertiary support might be offered by the horizontal band that begins around 5,230.

CAC 40 Price Chart: 4 – Hour Time Frame (May 2020 – December 2020)

cac 40 price chart

What is CAC 40 and What Influences its Price?

Encouragingly, however, the CAC 40 is largely unplagued by resistance at these levels - apart from recent highs. It is not until 5,765 and 5,870 that additional resistance might take shape. Either way, the longer-term trend remains higher and the CAC 40 looks to be undergoing healthy consolidation but the unknown depth of consolidation complicates the outlook.

FTSE 100 Price Forecast

The FTSE 100 has a full plate of Brexit ongoings, but price has been largely unbothered. In fact, the FTSE 100 is the best performer of three in December thus far and recent gains have painted a similarly encouraging technical picture. After breaking out from above descending trendline resistance in November and horizontal resistance in early December, the door for a continuation higher has been opened.

FTSE 100 Price Chart: Daily Time Frame (January 2020 – December 2020)

ftse 100 price chart

How to Trade FTSE 100

That said, the FTSE 100 may look to press higher still and the next area of notable resistance may not exist until the Fibonacci level near 6,850. Two Fibonacci levels and the psychological 7,000 mark may work to create an area of secondary resistance if 6,850 is broken. Still, the fundamental landscape is undoubtedly uncertain, so it is unlikely the FTSE 100 will push higher without incident.

FTSE 100 BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -3% 9% 0%
Weekly -4% 20% 2%
What does it mean for price action?
Get My Guide

Nevertheless, the FTSE 100 may employ prior resistance as support going forward. Since the index has climbed far and fast, it has a lot of potential levels to work with. First and foremost is the June high near 6,520 which has already offered a hint of support earlier this week. Secondary support of note might not materialize until 6,200. Either way, the FTSE 100 enjoys an encouraging technical outlook despite Brexit concerns.

--Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES