CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Levels to watch: FTSE 100, DAX and Dow

Global markets are on the slide, with the Fed’s rate rise driving stocks lower. With the Dow reaching a critical support level, further downside could spark another protracted period of weakness.

FTSE 100 halts decline after hitting two-year low

The FTSE 100 fell below 6670 in the early hours of the morning, with the index reaching a new two-year low. This continues the bearish trend for the index, pointing towards further downside.

However, with the index starting to regain ground off the back of a long-legged doji, there is a good chance we are set for an upward retracement. That being said, such a move would be perceived as a temporary rebound which is there to be sold into unless we break above 6792.

DAX returns to key support level

The DAX has also turned lower, with the continued creation of lower highs and lower lows taking us back into the crucial 10,588 swing low.

A break below that level will set us on the next leg lower, with the downtrend looking likely to remain intact. As such, watch for the reaction at this key support level to guide the price action for the day.

Dow temporarily break critical support level

The Dow Jones has fleetingly moved below the critical 23,112 support level, with the Federal Reserve’s (Fed’s) dovish hike doing little to help stocks.

Should the index manage to sustain the price action below that 23,112 level, we could be set for a protracted period of downside. Thus it makes sense to expect some form of rebound from here. Whether that happens or not remains to be seen, yet it makes sense to only look for short positions if we convincingly break below 23,112.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

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  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

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