DAX 30, CAC 40, FTSE 100 Forecasts To Start 2021

European indices enter 2021 in good form, trading near their highest levels in months. With the recently inked bilateral trade agreement between the European Union and China alongside the UK-EU Brexit trade deal, a degree of certainty has been offered to trade in the region. Further still, the agreements may help to spur cooperation between the nations and could spark increased economic activity – although further negotiations may be required to iron out the details.

Either way, the removal of uncertainty in conjunction with a coronavirus vaccine may help to boost sentiment in the DAX 30, CAC 40, and FTSE 100 – despite rampant coronavirus cases and lockdown measures. With some positive fundamental developments and an encouraging technical backdrop, the outlook for the European indices in the days ahead is optimistic.

DAX 30 PRICE FORECAST

The DAX 30 has climbed farther than its French and English counterparts, trading only points away from record levels and the 14,000 mark. Early resistance might reside along the 13,826 level – the index’s prior all-time high tagged in February. Barriers beyond 13,826 are rather sparse, perhaps with an exception at psychological numbers like 14,000 which rest narrowly overhead.

DAX 30 PRICE CHART: DAILY TIME FRAME (FEBRUARY 2020 – DECEMBER 2020)

(Click on image to enlarge)

dax 30 daily price chart forecast

On the other hand, months of gains have created a bevy of potential support for the German equity index. Early support may reside along the September high around 13,461 followed by the 50-day moving average and 13,000 slightly beneath. Trading near record levels and riding above key moving averages, the DAX 30 may be poised to continue higher.

CAC 40 PRICE FORECAST

The CAC 40 trades near its highest levels since late February but gains have slowed in recent weeks. Still, the French equity index rests above its 50 and 200-day moving averages which it can look to employ as support if selling pressures emerge. The Fibonacci level at 5,510 may be similarly supportive despite its proximity to price.

1 2
View single page >> |

Disclosure: See the full disclosure for DailyFX here.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.