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
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
Bearish
Gold
Mixed
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
GBP/USD
Mixed
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
Mixed
More View more
Real Time News
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/XnQzHlFsAv
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/FuLPdCLpKs
  • Elections anticipation may sabotage trend development next week, but that won't curb volatility between stimulus talks, Covid cases, FAANG earnings and 3Q GDP updates. Top of my watch list this week will be $EURUSD. My video on it all: https://www.dailyfx.com/forex/video/daily_news_report/2020/10/24/EURUSD-a-Top-Volatility-Risk-This-Week-but-Election-Anxiety-May-Keep-Markets-From-Trends.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/t14eT2SMa7
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/RfUWJdNjzk
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/EzdjTZEbx2
  • The Dow Jones, S&P 500 and AUD/USD could be at risk of extending losses as retail investors increase upside exposure. What are key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/ivQmFUTGdU https://t.co/KuIoM7g9E3
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/FBT1eSZdjF
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/LRL1iD3JDt
  • Even though the Australian Dollar lost some ground this week, support levels held. Bearish developments are brewing in $AUDUSD and $AUDJPY but remain unconfirmed. What else does #AUD face ahead technically? - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/24/Australian-Dollar-Technical-Forecast-AUDUSD-AUDJPY-EURAUD-GBPAUD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/0gHyXW1vHh
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/9qcanKW0uT
DAX 30 & CAC 40 Technical Forecast: Short Exposure Explodes as Indices Rise

DAX 30 & CAC 40 Technical Forecast: Short Exposure Explodes as Indices Rise

2019-10-17 18:30:00
Peter Hanks, Analyst
Share:

DAX 30 & CAC 40 Forecast:

  • The DAX 30 has run up to resistance after Brexit optimism helped to bolster European stocks
  • Similarly, the CAC 40 surged to its highest level since December 2007
  • Regardless, IG Client Sentiment Data reveals retail traders have increased their short exposure significantly, signaling the rallies may continue

DAX 30 & CAC 40 Technical Forecast: Short Exposure Explodes as Indices Rise

A series of fundamental factors have bolstered the standing of the DAX 30 and CAC 40, which have subsequently pushed through various levels of resistance. As the Brexit saga continues to unfold, the two indices could look to extend their runs higher, but subsequent resistance stands in their way and retail traders are convinced the rally is overdone. With that in mind, the contrarian nature of retail trader data could suggest trend continuation is in store.

DAX 30 Technical Forecast

That said, resistance to the topside will be of critical importance in the event of sustained bullishness. The immediate hurdle – albeit somewhat minor – resides around 12,700. But more importantly, however, a confluence of resistance marked by the ascending trendline from December and horizontal resistance from July 2018 will look to stall an extension above 12800. Should the two levels be surmounted, the next notable area of resistance may rest at 13200.

DAX 30 Price Chart: Daily Time Frame (January 2018 – October 2018) (Chart 1)

DAX30 Daily Price Chart

If, on the other hand, retail traders are correct in their assumption that the DAX 30 is overbought, technical support at the 12460 and 12210 levels will look to buoy the German Index before the 200-day moving average can assist around 12050.

German30 Client Positioning

Retail trader data shows 27.99% of traders are net-long with the ratio of traders short to long at 2.57 to 1. The number of traders net-long is 5.83% lower than Wednesday and 29.83% lower from last week, while the number of traders net-short is 6.67% lower than Wednesday and 36.00% higher from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Germany 30 prices may continue to rise – bolstered by the divergence in short and long interest.

CAC 40 Technical Forecast

The French equity index, the CAC 40, finds itself in a similar position to the DAX. Soaring to its highest level since December 2007, the CAC has pierced multiple levels of resistance in recent weeks as it looks to reclaim levels not seen in this decade. A familiar trendline from December will look to rebuke the CAC’s rally, residing around 5745. At this time, the level appears to be the sole technical hurdle between the Index and the more robust resistance around 5900 which could allow for another quick surge if bullishness persists.

CAC 40 Price Chart: Daily Time Frame (November 2017 – October 2019) (Chart 2)

France40 Daily Price Chart

Retail trader data shows 20.14% of traders are net-long with the ratio of traders short to long at 3.97 to 1. The number of traders net-long is 0.49% higher than Wednesday and 10.04% lower from last week, while the number of traders net-short is 6.74% lower than Wednesday and 23.23% higher from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests France 40 prices may continue to rise.

France40 Client Positioning

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Can Earnings Propel the Dow Jones and Nasdaq 100 to New Heights?

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

DISCLOSURES