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. See our updated Privacy Policy here.

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
Wall Street
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
More View more
Real Time News
  • 🇪🇸 Balance of Trade (JUL) Actual: €-1.60B Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • 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/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/sbejkd7XT5
  • *Reminder: Weekly Strategy Webinar Monday morning at 8:30am ET - https://t.co/lxd5fZnn4H Mid-Week Market Update on Wednesday at 9:30am ET - https://t.co/8SFBJxNZrA
DAX 30 Attempts to Push Higher, EUR/USD Hovering Above Key Support

DAX 30 Attempts to Push Higher, EUR/USD Hovering Above Key Support

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • GameStop leads a volatile session in the US
  • DAX 30 tests the lower bound of its range
  • EUR/USD sees bearish pressure increase

Market sentiment: volatility has returned to US markets as a swarm of retail investors seem to be working together to prop up US equities ahead of key earnings being released. The latest stock to fall victim to excessive speculation is GameStop, jumping from $19 to over $160 in just two weeks, before dropping back down to $80 within a matter of minutes, causing a short-squeeze and gamma trap, meaning sellers and options traders had to pile into the market to keep up their positions.

Elsewhere, market sentiment is struggling to keep up with the quick moves in the US, with risk-off prevailing in the Asian session and European equities attempting to break higher.

DAX: Sellers are struggling to gain the upper hand on the DAX 30 as the German index continues to find strong support at the 13,600 mark, keeping within its range from the last month. This consolidation is allowing for momentum to build in either direction, with yesterday’s pullback allowing for overbought conditions to ease further. The long-term bias remains tilted to the upside as bulls attempt to break the all-time high (14,140) although there are some strong resistance areas along the way as the DAX remains bound by its tightening range (13,995 – 13,600).

Advertisement

DAX 30 Daily chart

DAX 30 Attempts to Push Higher, EUR/USD Hovering Above Key Support

EUR: The Euro continues to be coming off recent highs against the US Dollar whilst horizontal support at 0.8863 remains a key area stopping sellers in EUR/GBP. The common currency has been unable to keep the strong support it saw coming into the new year, with even the slow-moving yen moving ahead of the euro, mostly due to vaccine distribution issues and the continued spread of the virus through the continent.

The bearish case for EUR/USD continues to form as the pair hovers just above key support at 1.2121, which was already broken last week, weakening the effect it may have in stopping selling pressure. I think all eyes will be on the psychological 1.20 mark to really decide where momentum is going in the longer-term, so a break below 1.2050, the low from January 18th, is likely to increase bearish momentum.

EUR/USD Daily chart

DAX 30 Attempts to Push Higher, EUR/USD Hovering Above Key Support

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES