DAX, FTSE 100 Forecast: Key Levels to Watch

REPRIEVE OF THE DAX TO BE SHORT-TERM

DAX: The equities market is taking a more upbeat tone as European bourses try to recover from yesterday's steep losses. Despite the temporary respite, risk assets remain vulnerable to negative threats. Last week's failure at the 14800 pivot signals that this region will continue to restrict relief rallies in the index, making it a good place to avoid. A break below 14000, on the other hand, paves the way to 13500-13600.

While Fed speakers will be scrutinized, little new information is anticipated, given what has already been revealed in the FOMC minutes and Fed Governor Brainard's aggressive remarks. However, as we get closer to the May FOMC meeting, risk assets are expected to come under pressure, thus stocks remain a sell on relief rallies.

THE FTSE 100 CONTINUES TO BE UNDERPINNED BY HIGHER COMMODITY PRICES

FTSE 100: Despite a small drop in the index, the FTSE 100 has outperformed its main peers. Given the large exposure to commodity-related firms, the index has managed to scrape out moderate gains year to far, rising 2.5 percent. In terms of technical analysis, the index seems to be fatigued after failing to hold above 7600.

On the downside, support may be found between 7500 and 7515-30. The FTSE 100, however, is not the greatest option for investors seeking for downside, since rising commodities prices give a moderate degree of support, when compared to indexes with significant tech exposure.