With the current explosion in value to the UK100 and the GER30 many market analysers are spreading the threat of deflation along all the index's. The current boom in value for these two index's are caused by the financial mess the global economy is in. The euro is on its knees and the pound is currently under pressure with brexit this has caused company's inside the UK100 or GER30 (or nicknamed the DAX) to soar to the highest values since the began. The majority of these company's don't trade there own currency a lot of it is to do with the dollar. This week Monday the 6th of march we have seen the UK100 and the GER30 open bearish. My forecast for the next week for the two pairs will be;
Dax (GER30) This week has been a bearish start and I think it will continue it will try and find support between S1 11925.25 if it touches this it may over extend and bounce back or if it closes under this we will be looking at a breakdown and will seek support at S2.
FTSE100; As a principal rule whenever the European index's are rocketing the FTSE100 isn't far behind as the thing propelling the others does that to, in return when they are bearish or over extended they crumble together as you can see a pattern. I can see the FTSE100 bouncing between the S2 7327.87 and S3 7299..07 as the week goes if the FTSE100 breaks s3 we could see a massive crumble in price.
Author: Ashton Hunt
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