News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/kuqShllQFp
  • Although the longer-term technical outlook for AUD remains skewed to the topside, recent developments suggest the commodity-sensitive currency could lose ground against USD and JPY. Get your market update from @DanielGMoss here: https://t.co/Rl1h8WdXwp https://t.co/49RKx86FzG
  • ECB policymakers were out in force last week, saying they were watching Eurozone government bond yields, but yields rose anyway, and that’s positive for $EURUSD and the Euro crosses. Get your market update from @MartinSEssex here: https://t.co/nJdh9dA1HM https://t.co/peLh7zTTiz
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/vs7ypHHwya
  • The GBP rally vs USD came to an abrupt end and reversal; this sets cable up for more selling in the week ahead. Get your market update from @PaulRobinsonFX here: https://t.co/Ee9PSppnd2 https://t.co/uaiCiEHBMs
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/OXUgYIl2ru
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/xncree8XaW
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/gGOU1RVQzq
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/wrI29FTN41
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/UzzC1bGzRJ
DAX 30 Index Storms to Record Highs on Vaccine Rollout, Brexit Relief

DAX 30 Index Storms to Record Highs on Vaccine Rollout, Brexit Relief

Daniel Moss, Analyst

DAX 30 Index, Coronavirus Vaccine, Lockdown Restrictions, Brexit, IGCS – Talking Points:

  • Equity markets gained ground during APAC trade as investors cheered the US House of Representatives push for increased stimulus checks.
  • The distribution of Pfizer’s Covid-19 vaccine, in tandem with a resolution in Brexit talks, sent the German DAX 30 index soaring to fresh record highs.
  • However, bearish RSI divergence suggests a short-term pullback could be in the offing.
Advertisement

Asia-Pacific Recap

Equity markets broadly gained during Asia-Pacific trade, buoyed by news that the US House of Representatives had backed President Donald Trump’s calls for an increase in stimulus payments from $600 to $2,000.

Australia’s ASX 200 index rose 0.53% while Japan’s Nikkei 225 soared to its highest levels in 30 years, climbing 2.66%. China’s CSI 300 index fell 0.32% as investors mulled the possibility of an anti-trust investigation into Alibaba by Chinese authorities.

In FX markets, the cyclically-sensitive NOK and NZD largely outperformed, while the haven-associated USD and JPY dipped lower against their major counterparts.

Gold recovered lost ground while silver prices slipped lower as yields on US 10-year Treasuries crept 1 basis point higher.

Looking ahead, unemployment data out of Brazil headlines a rather light economic docket as market participants remain intently focused on how the Senate will vote on the House’s bill.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Daniel Moss
Trading Forex News: The Strategy
Get My Guide

Vaccine Rollout, Brexit Relief Buoying EU Stocks

The approval of Pfizer and BioNTech’s coronavirus vaccine by European regulators, in tandem with the UK and EU finally agreeing on a Brexit trade deal, has sent the German benchmark DAX 30 index storming higher in recent days. The index has climbed over 4% this month to exceed the previous record high set in February.

However, investors may be getting a bit of themselves given the nation is currently under strict lockdown measures and is averaging over 19,000 new daily coronavirus infections.

DAX 30 Index Storms to Record Highs on Vaccine Rollout, Brexit Relief

Sources – Worldometer, University of Oxford

Indeed, Interior Minister Horst Seehofer has warned that “if the lockdown does not have a sufficient effect, the measures must be tightened” in order to avoid a potential third wave of the virus. Therefore, it appears market participants may be banking on a swift return to normalcy in light of the recent vaccine approval.

That being said, several health officials have warned that it will take several months for the vaccine rollout to have a measurable impact on the virus. Nevertheless, investors may dismiss these concerns in the short-term and continue to put a premium on European equity indices despite the notable deterioration in local health outcomes.

DAX 30 Index Futures Daily Chart – Eyeing Psychological Resistance

DAX 30 Index Storms to Record Highs on Vaccine Rollout, Brexit Relief

DAX 30 index futures daily chart created using Tradingview

From a technical perspective, the DAX 30 index looks set to extend its push to fresh record highs, after bursting through key range resistance at 13780 – 18820.

With the RSI eyeing a push into overbought territory, and the slopes of all six moving averages notably steepening, the path of least resistance seems to favour the upside.

A daily close above the February high (13829) would probably carve a path for prices to probe psychological resistance at 14000 and the 50% Fibonacci (14067), with a break above bringing the 61.8% Fibonacci into focus (14316).

Conversely, slipping back below the February high could trigger a short-term pullback towards support at the November high (13447).

DAX 30 Index Futures 4-Hour Chart – RSI Divergence Hints at Pullback

DAX 30 Index Storms to Record Highs on Vaccine Rollout, Brexit Relief

DAX 30 index futures 4-hour chart created using Tradingview

However, bearish RSI divergence on the four-hour chart suggests that a near-term pullback towards former resistance-turned-support at 13800 is on the cards.

This level may provide the perfect springboard for buyers to continue driving the index higher, with a convincing push above 13900 opening the door for prices to probe the 127.2% Fibonacci expansion (13978).

Alternatively, failure to remain constructively perched above 13800 could allow sellers to regain control and generate a downside push back towards the December 18 high (13773).

DAX 30 Index Storms to Record Highs on Vaccine Rollout, Brexit Relief

The IG Client Sentiment Report shows 24.47% of traders are net-long with the ratio of traders short to long at 3.09 to 1. The number of traders net-long is 0.48% higher than yesterday and 20.46% lower from last week, while the number of traders net-short is 9.76% higher than yesterday and 34.60% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests DAX 30 prices may continue to rise.

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger DAX 30-bullish contrarian trading bias.

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Daniel Moss
Improve your trading with IG Client Sentiment Data
Get My Guide

https://www.dailyfx.com/sentiment-report?ref-author=Moss

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES