FTSE 100, CAC 40 and AEX Forecast – European Indices Continue to See Upward Pressures

FTSE 100 Technical Analysis

Starting with the FTSE 100, it continues to take off at the moment and is showing quite a bit of strength. Part of what we have seen over the last couple of days has been that employment is cooling down in the United Kingdom, and the thought is that the Bank of England may have to loosen a little quicker than anticipated.

Retail sales have been strong recently and some other indicators as far as economic momentum. This could put us in a bit of a sweet spot. When you look at the chart itself, it is just bullish at this point in time. It is supported all the way down to the 10,450 level and remains a buy on the dip scenario.

CAC 40 Technical Analysis

The CAC 40 in Paris continues to slam against the 8,400 euros level but finds it to be a little too much to overcome. If we can break above the highs from last week, then it frees Paris to go much higher, perhaps as high as 8,600 euros, maybe even beyond that. In the meantime, we still see a little bit of sideways choppy behavior. Buying on the dips continues to be a thing here with 8,275 being a level of significant support.

We are in a nice uptrend, it is just very choppy, and luxury brands have had a bit of a rough go from time to time here, which does have an outsized effect on this index.

AEX Technical Analysis

The AEX in Amsterdam looks as if it is trying to rally towards the 1,015 level. That area has been a bit of a barrier as of late, but if we can break above there, it sends Amsterdam higher, probably by a good 50 euros, and then of course could open up some of the smaller indices around Europe.

Short-term pullbacks continue to show buying opportunities down to the 50-day EMA and perhaps even the 975-euro level. I am bullish of Amsterdam, but it does seem to be a bit more of a laggard. Basically, the UK is doing well, while continental Europe is not doing poorly but still hesitating a bit.