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.

Free Trading Guides
EUR/USD
Bullish
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
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • A recession is typically accompanied by falling stock prices, but equities are not the be-all and end-all for recession investment strategies. Get your market update from @PeterHanksFX here: https://t.co/H0Rf3AkECs https://t.co/5Il5ptMnMu
  • The $USD may rise versus the Singapore Dollar, Indonesian Rupiah and Malaysian Ringgit if capital flows out of #ASEAN countries as key U.S. data risks a selloff in equities. Get your market update from @ddubrovskyFX here: https://t.co/JWIRn6MLrK https://t.co/y2tXiYs9aV
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/H6I3MXjW06
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/ZsHdd9NFcO
  • The $USD may be at risk as trader positioning warns that the S&P 500 may bounce as markets look forward to fiscal stimulus. USD/CAD could rise if key support holds down the road.Get your market update from @ddubrovskyFX here:https://t.co/TMq9VZbZ7W https://t.co/TisnGYxllM
  • Here my weekend trading video 'Dow, VIX, Dollar and Gold: Levels and Volatility to Gauge the Markets' https://www.dailyfx.com/forex/video/daily_news_report/2020/03/28/Dow-VIX-Dollar-and-Gold-Levels-and-Volatility-to-Gauge-the-Markets-.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • #Silver and #gold prices have had a fascinating 2020, counterintuitively falling as the #coronavirus’ economic hit has become horribly apparent. A rebound is now afoot. Get your market update from @DavidCottleFX here: https://t.co/nng7lwQ22E https://t.co/JwehIVbBA2
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/mcq5Bq2Jui
  • The $USD soared against the Indonesian Rupiah, with USD/IDR eyeing its best month since the 1997-98 Asia financial crisis amid the #coronavirus outbreak. Can this trend continue? Find out from @ddubrovskyFX here:https://t.co/M3sDZOftrE https://t.co/sbIbp68UOh
  • The $USD may be at risk as technical signals show USD/SGD, USD/MYR and USD/IDR may turn lower. Ahead, the markets will likely weigh US fiscal stimulus bets against dismal data risk. Get your market update from @ddubrovskyFX here:https://t.co/iGqBrY6qyO https://t.co/kJ89YgK3Mm
Coronavirus Hits Europe: DAX & CAC 40 Risk Larger Break Down

Coronavirus Hits Europe: DAX & CAC 40 Risk Larger Break Down

2020-03-05 13:15:00
Justin McQueen, Analyst
Share:

DAX 30, CAC 40 Price Analysis & News

  • Coronavirus Spread in Europe Weighs on Outlook
  • DAX & CAC 40 Heads Lower
  • Eyes on ECB Measures

The Coronavirus is spreading quickly across Europe with Italy resorting to emergency measures through plans to close schools and universities, potentially setting a precedent for the rest of Europe. At the same time, China’s economic hit from the virus is likely to spill-over to the rest of the world, however, more so for Europe, given its exposure to China.

Equities Forecast
Equities Forecast
Recommended by Justin McQueen
Download our fresh Q1Equities Forecast
Get My Guide

Equities Technical Analysis

DAX: Having posted a modest rebound in yesterday’s session, the DAX has quickly faded its attempted recovery as concerns continue to linger across Europe. On the monetary policy front, the Federal Reserve provided an emergency rate cut. However, while the ECB has limited ammo on the monetary policy front with regard to interest rates, they may provide better measures to ensure stability via more targeted programs to reduce the burden on SMEs (announcement likely to come in the ECB March 18th meeting). That said, macro trends are likely to dictate price action and with the current situation looking set to get worse before improvement is seen, the outlook for the DAX remains cautious.

Germany 30 MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 18% -16% -4%
Weekly -5% 9% 3%
What does it mean for price action?
Get My Guide

Support

Resistance

11570

61.8% Fib

12000

-

11370

Aug 2019 Triple Bottom

12433

38.2% Fib

11036

76.4% Fib

12744

200DMA

DAX Price Chart: Daily Time Frame

Coronavirus Hits Europe: DAX & CAC 40 Risk Larger Break Down

IG Charts

CAC 40: Much like the DAX, there is little in the way of notable support (until 5115) with the index back on the decline. As such, a break below support, which also coincides with the August 2019 low, could leave the index exposed to greater downside below 5000.

Support

Resistance

5302

50% Fib

5496

38.2% Fib

5115

August 2019 Low

5736

200DMA

5000

-

5770

January 31st Low

What is CAC 40 and What Influences its Price?

CAC 40 Price Chart: Daily Time Frame

Coronavirus Hits Europe: DAX & CAC 40 Risk Larger Break Down

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.