DAX, CAC and SMI Forecasts – EU Indices Mixed as Rates Rise Across the Continent

DAX Technical Analysis

The DAX has fallen a bit during the trading session here on Friday as we are testing the 24,000 level again. The 24,000 level is an area that has been important multiple times in the past and I think probably continues to attract a lot of attention.

The 50-day EMA and 200-day EMA indicators are sitting right there as support, but one of the biggest problems we have right now is that German yields are spiking, and that will be bad for equities. Pay attention to the 10-year yield; if it starts to drift off right here at this support level in the DAX, we could see a bit of a recovery.

CAC 40 Technical Analysis

The CAC in France also has fallen to pierce the 8,000-euro level as the rates in France continue to climb, as energy shocks and energy inflation are still major concerns. It is not a huge surprise to see the market just below the 8,000 level. It is an area that has been important a couple of times in the past, and I think it extends down to the 7,900 level for support.

SMI Technical Analysis

The Swiss index has risen a bit, but that is not a huge surprise considering that the interest rates in Switzerland are so low, even though they are spiking during the Friday session.

And of course, the Swiss index has a lot of defensive names such as pharmaceuticals and consumer staples in it, so a lot of times this index will rise when others are struggling. It currently sees the 13,400 level as resistance and the 13,000 level as support. The 50-day EMA is basically in the middle of all that and is flat. All things being equal, I think this is a market that continues the same range-bound trading it has seen for several weeks.