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.

Free Trading Guides
EUR/USD
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
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
Bitcoin
Mixed
More View more
Real Time News
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
DAX 30 & CAC 40 Technical Analysis: Looking for New Highs

DAX 30 & CAC 40 Technical Analysis: Looking for New Highs

2020-02-11 12:00:00
Paul Robinson, Currency Strategist
Share:

DAX 30/CAC 40 Technical Highlights

  • DAX 30 trading around record high, looking to break on through
  • CAC 40 looking to trade to best levels since 2007

DAX 30 trading around record high, looking to break on through

The DAX has spent nearly a week of trading around the record high from 2018 and January attempt to break out above the record high. It is struggling to do so, but a new record high and then some look to be just around the corner.

There is a top-side trend-line running over from November high that could be a bit of a problem in record territory, and it makes up the top-side a potential “mega-phone” pattern. A formation highlighted by increasingly larger swings in price, often thought of as being bearish; however, these patterns can lead to bullish runs to as the market gives way to stability. Bottom line, it just marks a period of growing indecision that should lead to a decisive move.

At this time, it difficult to consider a bearish path given the generally bullish tone of global stock markets, particularly in the U.S. It will require a strong move lower in the DAX and general risk appetite, with the German benchmark needing to drop below 13k before a bearish outlook can grow legs. For now, staying the course of looking for higher prices to come.

Equities Forecast
Equities Forecast
Recommended by Paul Robinson
Are indices your thing? Check out the Q1 Forecast.
Get My Guide

DAX 30 Daily Chart (flirting with breakout to record high)

DAX 30 daily chart

DAX Chart by TradingView

CAC 40 looking to trade to best levels since 2007

The CAC 40 isn’t set up as bullishly as the DAX, but nevertheless is looking to make an important high with a little bit more of a rally. A breakout above 6109 will have the French benchmark closing in on the 2007 peak at 6168. This seems the path for now, but there are a couple of potentially bearish scenarios.

Should we see the CAC stop at the January high and turn down a double-top could form if weakness develops below 5800. Alternatively, the CAC could carve out a right shoulder of a head-and-shoulders pattern, but price will need to turn down immediately and trade below the neckline running higher from December and below 5800.

The bearish patterns aren’t the higher probability outcomes at this time, though, so staying the course here until we see the CAC alongside its closely tied counterpart, the DAX, and global markets as a whole start to weaken.

CAC 40 Daily Chart (new highs look to be soon)

CAC 40 daily chart

CAC 40 Chart by TradingView

Want to learn more about trading the DAX? Check out ‘How to Trade the DAX’, and join me weekly for technical updates in the Indices and Commodities webinar.

Forex & CFD Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES

News & Analysis at your fingertips.