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 Dow

European and US markets have switched places, with the FTSE 100 and DAX looking likely to break higher amid potential further weakness for the Dow.

IG Analyst

Publication date : 2017-08-09T08:45:44+0100

DAX trader

Source: Bloomberg

FTSE 100 in retracement mode following last week’s rally

The FTSE 100 managed to break below the crucial 7516 support level yesterday, providing a clue that that we are likely to retrace from here.

Keep an eye out for the 61.8% and 76.4% retracements for support, with longs preferred around those levels. We would need to break below 7457 to negate this bullish view.

FTSE chart

FTSE chart

FTSE chart

DAX expected to turn higher despite selling pressure

The DAX has pulled back to the 61.8% this morning, set within what looks like a bottoming formation over the past two weeks. This means that there is a good chance we will move higher from here.

As such, bullish positions are favoured as long as the price remains above the 12,098 level.

DAX chart

DAX chart

DAX chart

Dow breaks lower from recent uptrend

The Dow Jones sold off sharply overnight, with the break below 22,082 paving the way for a strong move lower. That points towards further downside to come, with that same 22,082 level as potential resistance.

A break above the 22,179 level would point towards a continuation of the uptrend, yet for now it looks like we could see the Dow come off somewhat.

Dow Jones chart

Dow Jones chart

Dow Jones chart

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