DAX, FTSE prices muted in narrow range of technical support and resistance

Dax futures have recently struggled to maintain the bullish momentum responsible driving the major European index above 15,000. While the FTSE 100 experienced a pullback from its highest level since 2018, Dow futures have continued to threaten resistance.

As a weaker US dollar and rate expectations drive the global equities, rising volatility, sentiment and technical levels could provide an additional catalyst for price action. With fundamentals largely priced in, the below charts illustrate the manner in which historical moves could continue to assist in guiding prices.

DAX 40 technical analysis

For the German Dax, the 78.6% Fibonacci retracement from the 2022 that limited gains throughout last year has remained as key resistance. Although the same levels discussed last week currently remain intact, prices have fallen into a zone of confluency that could influence both the short and longer-term move.

After reaching a high of 15,332 last Tuesday on the 17th of Jan, failure to gain traction above this level forced Dax futures lower. However, with the psychological level of 15,000 forming as support, a temporary retest of 14,961 was met with swift retaliation from bulls. Taking a closer look at today’s price action, the current daily range between 15,071 and 15,209 has resulted in lackluster momentum.

Dax 40 daily chart

UK FTSE 100 technical analysis

With the FTSE 100 trading marginally higher, materials and consumer staples have gained 0.64% and 0.58% respectively while utilities lead losses with a 1.00% decline.

FTSE 100 daily chart

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