CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE, DAX and S&P 500

US markets touched a new record high yesterday, but in Europe a rallying euro is weighing on the DAX.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-07-21T09:35:30+0100

The City of London

Source: Bloomberg

FTSE 100 entering a new bullish phase

Having broken 7452, the FTSE moved on to break above the downward trendline that has held since 2 June, the latest such incident this year. Thus, 7553 and then 7600 are the new areas of potential resistance.

A new bullish phase looks to have begun, with a drop back below 7400 the absolute minimum needed to put a more bearish spin on things.

FTSE chart

FTSE chart

FTSE chart

DAX dragged down by the strong euro

Continued euro strength has made life very difficult for European markets, the DAX chief among them.

Support has been provided at 12,408 over the past month, with a deeper retracement at 12,310 likely to bring out more buyers. It will require a breach of 12,600 to put the index back above the descending trendline off the mid-June highs. Below 12,310 the index could see a drop to 12,179 or 11,893.

DAX chart

DAX chart

DAX chart

S&P 500 remains bullish

A new intraday record high for the S&P 500 confirms that we are still looking to buy the dips as and when they occur.

It will need a push below 2427 to even put a dent in the sunny outlook.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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