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
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • this was the central focus of the q2 tech forecast on $USD. Monthly chart, resistance on underside of long-term trend channel after fibo support helped to provide the bounce in early-Q1 https://www.dailyfx.com/forex/market_alert/2021/04/04/USD-Q2-2021-Technical-Forecast.html https://t.co/vtSoeJ4dsi
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rs6RgWvlsG
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.27% Gold: -0.27% Silver: -0.90% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/XXWvUv4FbP
  • US Indices are all trading in the red today, with Tech and Small Caps both down over 1%. DOW -0.53% SPX -0.71% NDX -1.30% RUT -1.58% $DIA $SPY $QQQ $IWM
  • USD/CAD trades to a fresh monthly low (1.2471) following the failed attempt to push back above the 50-Day SMA (1.2585). Get your $USDCAD market update from @DavidJSong here:https://t.co/H4HSs3F399 https://t.co/XNCeAY4VJS
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.01% 🇯🇵JPY: 0.65% 🇨🇭CHF: 0.50% 🇪🇺EUR: 0.41% 🇦🇺AUD: 0.33% 🇨🇦CAD: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/84xpQjIXNy
  • The Cable Come Back $GBPUSD hard charging for that 1.4000 handle - the same that rebuked the advance multiple times in March https://t.co/8LCcOxhGVF
  • $USD now down to the next fibo level, trying to grasp on to the 618 Q2 reversal theme still in play https://t.co/2VG2DW5lX5 https://t.co/vjzCG0gxHk
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: -0.19% FTSE 100: -0.20% Germany 30: -0.21% Wall Street: -0.40% US 500: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/lcRh4V7LPH
  • $Gold pulling back, support potential around prior neckline from the double bottom formation $GC https://t.co/zn5e1byJPx https://t.co/ImAEGmKN4G
DAX 30 Forecast: New Attempt to Break 14,000 as Positive Momentum Returns

DAX 30 Forecast: New Attempt to Break 14,000 as Positive Momentum Returns

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • Equities push higher as bond yields stabilize
  • DAX 30 bulls aim towards the 14,000 mark
Equities Forecast
Equities Forecast
Recommended by Daniela Sabin Hathorn
Get Your Free Equities Forecast
Get My Guide

Equities have managed to start the new month on the front foot as bond yields are taking a breather from their rapid surge over the last few weeks. Positive momentum has also been aided by the progress in approving the $1.9trn stimulus package in the US and the authorization of new Covid-19 vaccines.

The DAX 30 is approaching the 14,000 mark as last week’s selling pressure proved to be insufficient to consolidate a head and shoulders pattern and achieve further pullbacks, leaving the German index in a strong position to attempt a new push higher.

DAX 30 Forecast: Bond Yields Drive the Market as Investors Rebalance Their Portfolios

For now, the relative calmness in bond markets is thought to be calming investor’s nerves about higher inflation on the back of vaccine rollouts and large stimulus packages, whilst falling infection rates are helping bullish sentiment consolidate. That said, I do believe the current moves in the bond markets are a pause for air rather than a move towards stability in the short-run, which means volatility could spike up again.

German Bund Yield Chart (Aug 2020 – Mar 2021)

DAX 30 Forecast: New Attempt to Break 14,000 as Positive Momentum Returns
Advertisement

DAX 30 Levels

Looking at the daily chart, the DAX 30 looks to be in a strong position to consolidate bullish momentum as the overbought conditions of the last few weeks have now been fully reversed. The stochastic oscillator is now sitting just above the midpoint whilst the MACD is reducing the negative convergence between its lines, pointing towards the possibility of new buying pressure appearing.

That said, I still struggle to see enough bullish momentum to attempt a break above topside resistance at 14,140. A break above last week’s high at 14,075 would allow us to become more confident in the push higher, whilst another rejection at this level may see new sellers attempt to bring the index down again. To the downside, the 13,600 continues to be a significant level of support, so any attempt to push below is likely to gain further traction if successful.

DAX 30 Daily chart

DAX 30 Forecast: New Attempt to Break 14,000 as Positive Momentum Returns
Germany 30 Mixed
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 0% 0% 0%
Weekly -28% 2% -6%
What does it mean for price action?
Get My Guide

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