FTSE, DAX and CAC Forecast – UK Up, EU Sideways

FTSE 100 Technical Analysis

The FTSE 100 looks as if it’s ready to rock. It’s ready to go higher and I do think a breakout is potentially imminent here. This consolidation for me looks very healthy. With that being said, I also look very closely at the overall risk appetite of traders around the world, recognizing that most of these indices move in the same direction.

I think you’ve got a scenario here where as long as we can stay above the 10,000 level, you probably have the FTSE breaking out much higher. I’m thinking possibly of 10,500. Very much a buy-on-the-dip scenario.

DAX and CAC 40 Technical Analysis

The DAX disappoints me a bit because, quite frankly, this is a perfect setup from a technical analysis standpoint. But it looks like I think there are enough companies in Germany worried about the tariff drag that maybe this makes the DAX a little bit softer than the FTSE 100, as the United States and the United Kingdom already have a trade agreement.

This is an index that’s made up of a lot of multinational exporters, so that obviously has a major influence on it. But I am looking for a bounce here and a recapture of 25,000 really could get the momentum going higher.

The CAC 40 in Paris is continuing to dance around the 50-day EMA. If we can break above the, say, 8,200 euros level, I think the Parisian index rallies towards the highs. This is a little bit different because it is heavily influenced by luxury brands but at the end of the day, it is still slightly positive.

It’s more of a grinding type of index, so keep that in mind. I’m not looking for an explosive move here, but I am looking for it to maintain its support at the 8,000-euro level, which is also backed up by the 200-day EMA.

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