DAX, CAC, FTSE and 100 Forecasts – Euro Area Indices Drop on Risk Aversion

DAX 40 Technical Analysis

The DAX in Germany has fallen to test the 50-day EMA and the 24,000-euro level, an area that has been important for some time. We also have the 200-day EMA sitting just below and I think that is something worth paying attention to as well.

Any type of bounce from here will more likely than not bring in buyers trying to take advantage of cheap contracts. That being said, there are so many nonsensical headlines coming out of the Middle East that it’s very difficult to imagine a scenario where anything’s going to be easy to hang onto.

As long as the Americans and the Iranians continue to manipulate the media for propaganda points, the concerns about energy in places like Germany will be a major issue. Because of this, even if we do rally from here, it will more likely than not just be more range-bound trading.

CAC 40 Technical Analysis

The CAC in Paris, of course, will suffer the same fate as it’s all about Iran and America at the moment, despite the fact that luxury seems to be doing okay in France.

The 8,000-euro level is a technical level that a lot of people will be paying attention to, so it does make quite a bit of sense. I think ultimately any rally at this point in time opens up the possibility of a move to the 200-day EMA, maybe even the 50-day EMA. The 7,900-euro level underneath, I believe, is significant support.

FTSE 100 Technical Analysis

The FTSE 100 in London initially fell, but it is turning around to show signs of life again, and I do think it continues to go back and forth. I do like the idea of trying to work out the overall range and the 50-day EMA above will end up being a potential target.

After that, we would be looking at the 10,500 level. If we break down from here, the 10,000 level will continue to be supported in London, at least as far as everything I can see.

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