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
  • US equities back to record highs, but inflation concerns remain. FTSE eyeing EU-UK spat. Get your weekly equities outlook from @JMcQueenFX here: https://t.co/W5TUhVJ1YZ https://t.co/tQdkW5ysQD
  • What are the Market cycles? How are currencies impacted in these cycles? How can these cycles impact forex trading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/rc3wLhm8Bn
  • 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/t1vWdPFotC
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/J8WZ1JYXnX https://t.co/4mDGc8Bfd5
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/7Yd5Tzua0d
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/A0W3CA5EWh
  • The Canadian Dollar remains supported amid elevated crude oil prices. Don’t be surprised if the Bank of Canada disappoints aggressive hawkish expectations. Earnings season is a wildcard. Get your weekly Loonie forecast from @ddubrovskyFX here: https://t.co/iyb5OmW2S4 https://t.co/Oh35VUg9Gr
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/jQ9HH9KuWy
  • 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/VXiNCuR3bF
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/9SC4I69oi7
DAX 30 & CAC 40 Technical Analysis: Looking for New Highs

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

Paul Robinson, Strategist

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.

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