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. See our updated Privacy Policy here.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
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
More View more
Real Time News
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:
  • RT @michaeljburry: Read thread.
Technical Forecast - CAC 40, IBEX 35 Levels to Watch

Technical Forecast - CAC 40, IBEX 35 Levels to Watch

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • CAC 40 bounces off strong support
  • IBEX 35 runs into another key Fibonacci level

CAC 40 bounces off strong support

The CAC 40 has opened slightly higher today as global stocks bounce back from a sell-off rally seen on Monday as headlines about the health crisis took center stage in the absence of any positive news to keep last week’s momentum going.

Equities have been looking vulnerable in recent days so yesterday’s pullback was no surprise, but we’re starting to visualize a phase of unclear direction as sentiment weighs on either side. What we did see yesterday is confirmation of short-term support at 5,628 an area I had previously pointed out because it had been a strong resistance in the attempt to push higher back in November/December.

The CAC also managed to break above the resistance area I had pointed out at 5,705, but yesterday’s correction has left the current price below this level again, meaning it could well serve as key resistance in the next few days. If broken, buyers will be looking for a next leg higher in the attempt to recover the coronavirus losses since early March, so a break above 6,000 is the medium-term objective, but selling pressure may increase around the 5,830/40 area.


To the downside, a break below short-term support at 5,628 could see further selling pressure breaking below the 5,600 mark, at which point the 76.4% Fibonacci at 5,495 come into play.

CAC 40 Daily chart

Technical Forecast - CAC 40, IBEX 35 Levels to Watch

IBEX 35 runs into another key Fibonacci level

The IBEX 35 is trading with caution this morning after being unable to break a key resistance after last week’s catch up rally. The Spanish index was rejected at the 61.8% Fibonacci level at 8,450 after seeing a 4.8% surge in the latter part of last week, in an attempt to catch up to its European counterparts.

As I’ve mentioned for several months, Fibonacci levels are a key tool to measure the progress of one asset to another, which has been an efficient way of comparing the recovery of different indices from the falls seen back in March. The IBEX has been lagging its European counterparts since the recovery seen in the summer, during which the index was unable to break the 8,000 level.

Looking at current price action, I wouldn’t be surprised if we see sideways consolidation in the next few days as the index attempts to build up buyer support for the next leg higher. Breaking the 61.8% Fibonacci is not going to be easy if we base it off how price behaved at the previous Fibonacci levels, reinforced by the fact that price has already been rejected once.

Therefore, I expect 8,450 and 8,000 to be the short-term resistance and support levels and also the upper and lower bounds of a sideways range. That said, a break above the upper limit may be met with further resistance at 8,625, whilst a break below the lower limit may be met with buyer support at 7,640.

IBEX 35 Daily chart

Technical Forecast - CAC 40, IBEX 35 Levels to Watch

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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