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
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
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eaA8ZI6DVu
  • Chinese property development company Sinic Holdings (2103) - Down 87%...@DailyFXTeam #contagion #Evergrande https://t.co/h5mfwqGASZ
  • 🇪🇸 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
DAX 30 & FTSE 100 Wedge Breaks Look Imminent, Catalyst Required

DAX 30 & FTSE 100 Wedge Breaks Look Imminent, Catalyst Required

Peter Hanks, Strategist

DAX 30 & FTSE 100 Price Outlook:

DAX 30 & FTSE 100 Wedge Breaks Look Imminent, Catalyst Required

The DAX 30 and FTSE 100 have worked themselves into similar technical patterns over the last few weeks as both indices find themselves near the lower-bound of a rising wedge formation. Rising wedge patterns are generally viewed as bearish technical formations and, if the textbook example occurs, conclude by a breakout to the downside through the lower bound. Thus, the presence of such a formation on the European indices could suggest potential declines in the days ahead.

DAX 30 Technical Forecast

While the formation is typically viewed as an ominous one, there is cause for encouragement on the DAX 30 price chart. Most notably, the DAX 30 has recently established a series of new all-time highs which could suggest an eventual wedge break may serve as healthy consolidation before the next move higher rather than a rally-breaking reversal.

DAX 30 Price Chart: 4 - Hour Time Frame (March 2021 – June 2021)

dax 30 price chart

A bearish breakdown would see the DAX 30 test prior resistance around the 15,400 mark and a breach through secondary support may lead to range-bound price action for the German equity index.

How to Short Sell a Stock When Trading Falling Markets

FTSE 100 Technical Forecast

The FTSE 100 finds itself in a similar position, albeit over a much longer timeframe which could suggest a deeper retracement should bearishness occur. Unlike the DAX 30, the FTSE has yet to establish a new all-time high in the pattern, or in the post-pandemic era, which highlights the relative weakness of the index.

Thankfully for bulls, the FTSE 100 enjoys nearby support in the form of a Fibonacci level and the 50-day simple moving average. Both technical levels conveniently coincide with the lower-bound of the rising wedge which trades just north of 7,000. A breakdown could see the FTSE 100 seek initial support around the 6,800 mark.

FTSE 100 Price Chart: Daily Time Frame (December 2019 – June 2021)

FTSE 100 price chart

While both the DAX 30 and FTSE 100 trade within ominous technical patterns, the textbook resolution to these patterns does require an eventual breakdown – an event that requires a catalyst and conviction to provide follow-through.

With that in mind, the likelihood a minor break of necessity is posted - rather than an explosive volatility event - in either or both of the indices is heightened given current market conditions. Volume and volatility have all but dried up and economic data releases seem to have lost their ability to conjure up market activity. Nevertheless, the patterns warrant attention as a sudden revival in volatility could see price action accelerate. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist 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