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
Bullish
Oil - US Crude
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
Wall Street
Bullish
Gold
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
GBP/USD
Mixed
USD/JPY
Bullish
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
More View more
Real Time News
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 5.06% Gold: 1.39% Oil - US Crude: 0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FcWjbqvgkX
  • Heads Up:🇺🇸 Fed Kaplan Speech due at 14:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-06
  • After hitting a new two-year high of 1.1916, EUR/USD is now trading in the middle of today’s range at 1.1865 and needs a new driver to make or break the recent rally. Get your $EURUSD market update from @nickcawley1 here:https://t.co/EetZRs55q9 https://t.co/jxymBCa8rl
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.14% US 500: -0.19% Germany 30: -0.30% France 40: -0.77% FTSE 100: -1.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/suRP72SApO
  • Heads Up:🇷🇺 Inflation Rate YoY (JUL) due at 13:00 GMT (15min) Expected: 3.4% Previous: 3.2% https://www.dailyfx.com/economic-calendar#2020-08-06
  • 🇺🇸 Initial Jobless Claims (01/AUG) Actual: 1,186K Expected: 1415K Previous: 1434K https://www.dailyfx.com/economic-calendar#2020-08-06
  • 🇺🇸 Jobless Claims 4-Week Average (01/AUG) Actual: 1,337.75K Previous: 1368.5K https://www.dailyfx.com/economic-calendar#2020-08-06
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.82%, while traders in US 500 are at opposite extremes with 76.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/8lwdCO7f8U
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.29% 🇯🇵JPY: 0.08% 🇨🇭CHF: 0.00% 🇦🇺AUD: -0.15% 🇪🇺EUR: -0.18% 🇨🇦CAD: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/gpL0CBYyXO
  • Heads Up:🇺🇸 Continuing Jobless Claims (25/JUL) due at 12:30 GMT (15min) Expected: 16720K Previous: 17018K https://www.dailyfx.com/economic-calendar#2020-08-06
DAX 30, FTSE 100 & CAC 40 Forecasts: How Far Will Stocks Fall?

DAX 30, FTSE 100 & CAC 40 Forecasts: How Far Will Stocks Fall?

2020-06-11 17:15:00
Peter Hanks, Analyst
Share:

DAX 30, FTSE 100 & CAC 40 Price Outlook:

  • The DAX 30 broke beneath an ascending trendline and Fibonacci support
  • Similarly, the FTSE 100 pierced the lower bound of a rising channel that helped guide price higher
  • Not to be outdone, the CAC 40 is moving quickly toward a possible area of tertiary support after breaking through various Fibonacci levels

DAX 30, FTSE 100 & CAC 40 Forecasts: How Far Will Stocks Fall?

European equities showed early signs of weakness this week as sellers took control to push them beneath their recent peaks. Up until Thursday, US indices had not displayed serious signs of weakness as traders awaited the Fed rate decision. With the event risk passed, the DAX 30, FTSE 100 and CAC 40 have been joined by their US counterparts and selling has picked up pace. With accommodative central banks and governments behind them, the catalyst behind the recent retracement in developed equities is unclear, so how far will stocks fall?

Unfortunately for us as traders, it is exceedingly difficult to say. Without a clear driver, it can be argued a mere shift in sentiment is responsible for the current price action. Whatever the case may be, many analysts have long warned the fundamental conditions have become detached from current equity valuations – particularly in the United States. That being said, one of the most encouraging drivers of the most recent leg higher has been the technical landscape in my opinion.

DAX 30 Price Chart: 4 – Hour Time Frame (February – June)

DAX 30 price chart

As I stressed in my equity webinar, the consistent series of higher-highs and higher-lows across the major equity markets was a largely bullish sign. Although the fundamental drivers in the selloff are somewhat opaque, perhaps the most concerning development at this time is the damage dealt to the different technical formations.

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

In the case of the DAX 30, bearish price action pierced an ascending trendline and Fibonacci support around 12,447. This has opened the door to further losses, and the German equity index can now look to attack subsequent Fibonacci support around 11,592. A break beneath this area would constitute a new swing low and could increase selling pressure further.

FTSE 100 Price Chart: 4 – Hour Time Frame (March – June)

FTSE 100 price chart

Shifting focus to the FTSE 100, the destruction of an ascending channel from early April amounts to a major technical blow for the index. With the lower-bound broken and with secondary support around 6,067 pierced, technical traders may look for tertiary support around 5,885 which coincides with the bottom of a minor pullback in May.

CAC 40 Price Chart: 4 – Hour Time Frame (February – June)

CAC 40 price chart

A similar story is developing on the CAC 40. Selling pressure has moved the index from its recent peak and support has been tested. As it stands, the Fibonacci level around 4,672 may be the next level at risk.In the meantime, follow @PeterHanksFX on Twitter for updates.

Equities Forecast
Equities Forecast
Recommended by Peter Hanks
Get Your Free Equities Forecast
Get My Guide

Altogether, it seems the most concerning development from the recent price action is the irreversible damage dealt to the technical patterns that had been guiding price action higher over recent weeks. Thus, even if selling stalls out and bulls rejoin the fray, traders will have to negotiate these levels on a rebound higher which effectively makes any eventual recovery attempt more arduous.

--Written by Peter Hanks, 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

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.