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
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • RT @FxWestwater: Australian Dollar Outlook: $AUDUSD Unfazed by Falling Westpac Confidence Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/01/20/Australian-Dollar-Outlook-AUDUSD-Unfazed-by-Falling-Westpac-Confidence.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/uSsC…
  • Japanese Yen Price Analysis: AUD/JPY, EUR/JPY Poised to Gain Ground - https://www.dailyfx.com/forex/technical/home/analysis/eur-jpy/2021/01/20/Japanese-Yen-Price-Analysis-AUDJPY-EURJPY-Poised-to-Gain-Ground.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $JPY $AUDJPY $EURJPY https://t.co/LUS1GfqGF5
  • Heads Up:🇮🇩 Business Confidence (Q4) due at 04:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-20
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.77% Silver: 0.67% Gold: 0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/vqhNULQSZH
  • A Symmetrical Triangle and long-term trendline resistance provide key levels to watch for NZD/CHF and CAD/CHF. Get your market update from @FxWestwater here:https://t.co/kgfZ8qZRRz https://t.co/BhpXTXz5Ir
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.31% 🇨🇦CAD: 0.17% 🇬🇧GBP: 0.16% 🇪🇺EUR: 0.14% 🇳🇿NZD: 0.13% 🇨🇭CHF: 0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/U975Up5oUh
  • The #HSI looks set to re-challenge the 28,970 resistance. Will it succeed and attempt 30,000 mark today? https://t.co/ujmzRDsByq
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in EUR/JPY are at opposite extremes with 64.29%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wdG2u51Kl2
  • Japanese Chief Cabinet Secretary Kato: - Vaccine schedule can't be fixed before approval - Tokyo area still facing severe Covid situation - BBG $USDJPY
  • The British Pound may continue gaining ground against its haven-associated counterparts in the near term. However, the currency may give up gained ground against the New Zealand Dollar.Get your $GBP market update from @DanielGMoss here:https://t.co/cIp4BfbsXT https://t.co/VS6g0Z3FKO
DAX 30 Price Outlook: Index Bleeds Lower but Remains Above Support

DAX 30 Price Outlook: Index Bleeds Lower but Remains Above Support

Peter Hanks, Analyst

DAX 30 Forecast:

DAX 30 Price Outlook: Index Bleeds Lower but Remains Above Support

The DAX 30 moved lower in Wednesday trading alongside a broader decline in many risk assets. Despite recent losses, the DAX is considerably off its March lows and price action has been largely constructive. As a result, the German equity index has been able to reclaim a string of technical levels that it can now look to use as support should bearishness persist.

DAX 30 Price Chart: 4 - Hour Time Frame (February 2020 – April 2020)

dax 30 price chart

To that end, a nearby Fibonacci level at 10,210 will be an early opportunity for bulls to look to ward off further losses. The retracement is drawn from the February highs to the March lows, and its influence on price is visible throughout the latter half of March and in early April. Thus, if bears look to drive price lower, the 10,210 area may have something to say about it.

On the other hand, resistance may reside overhead at 10,900 which coincides with the 50% retracement of the recent market crash. Since not all chartists believe in the 50% Fibonacci level – because technically it is not part of the Fibonacci sequence – subsequent resistance around 11,060 may be a more appropriate barrier to watch.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Peter Hanks
Traits of Successful Traders
Get My Guide

Further, the line marks the last technical level before the DAX 30 can look to fill the gap overhead from 11,060 to 11,460, which may allow price to shoot higher in quick fashion. Therefore, the 10,900 to 11,060 area will likely provide robust resistance, but may open the door to a surge higher once surmounted. In the meantime, follow @PeterHanksFXon Twitter for updates and analysis.

Although the fundamental landscape remains highly uncertain, it seems a slow in new coronavirus cases and the response of governments and central banks has allowed traders to drive equities higher. Still, few analysts can agree upon the exact length and depth of the oncoming recession which leaves the rebound rally vulnerable. Until the markets and global economy return to a degree of normalcy, the risk of an abrupt reversal lower looms but the opportunity for quick trades in the other direction cannot be ignored.

Starts in:
Live now:
Jan 20
( 16:01 GMT )
Recommended by Peter Hanks
Weekly Stock Market Outlook
Register for webinar
Join now
Webinar has ended

With that in mind, the overhead gap on the DAX presents an interesting possibility in which traders may look to capitalize on the empty space if bullishness persists. With an invalidation area in the area beneath 10,210, traders willing to take on bullish exposure may set their sights on the space immediately after the gap and enjoy an attractive risk-reward setup that relies on the strength of nearby support and renewed risk appetite in the days ahead.

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

Contact and follow Peter on Twitter @PeterHanksFX

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

DISCLOSURES