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
EUR/USD
Bearish
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
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
USD/JPY
Bullish
More View more
Real Time News
  • What is seasonal change in volatility. Are we going through one right now? Find out: https://t.co/G0qfpOmMl2 https://t.co/HXCQzUQgxA
  • The US Dollar will be bracing for a cascade of political risks including the first presidential debate, ongoing stimulus talks, the Supreme Court vacancy against the backdrop of key employment data. Get your #currencies update from @ZabelinDimitri here: https://t.co/quU4MmUjxA https://t.co/jF6ubwRz1P
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/PfIVibmqn1
  • 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/td5WA4hCZC https://t.co/lKvEMf4QRe
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
DAX: Pressing Resistance Ahead of BoE Meeting

DAX: Pressing Resistance Ahead of BoE Meeting

2016-07-14 08:52:00
Paul Robinson, Strategist
Share:

What’s inside:

  • DAX clears one level of resistance, faces bigger one now at 10000/100
  • Anticipated stimulus in key economies is helping push markets higher
  • BoE could be a short-term catalyst for a pullback

On Tuesday, the DAX continued its advance from the July 7 low, clearing resistance in the 9730/820 vicinity, and in the process of doing so it made a higher from the July 4 swing high. This put the DAX up against another important area of resistance which has been in play since March – 10000/100. The higher high created wasn’t the most noteworthy given the generally sloppy and unreliable short-term trends in recent months, but nevertheless it is a higher high above resistance. Yesterday, the market took a breather just below 10k, but today it is again attacking the 10000/100 zone.

This brings us to an interesting juncture with the BoE rate decision coming up later this morning at 11:00 GMT. As we said yesterday, the FTSE appears to be set up for a ‘buy the rumor, sell the news’ scenario with the market already effectively pricing in central bank actions.

To rewind for a minute: Risk sentiment began quickly recovering following ‘Brexit’ and further mended itself a few days later when Carney hinted towards a summer stimulus plan. This week got off to a good start when Shinzo Abe was reelected for another term as Japan’s Prime Minister; more stimulus in Japan is anticipated sooner rather than later. The DAX, which has a 12-month correlation to the Nikkei of nearly 90%, of course joined in on the optimism.

With global markets all responding to fresh rounds of anticipated stimulus, stocks are poised for a decline given some of the already priced in expectations. The FTSE, and other markets in response, may initially pop higher, but we look for it to wear off quickly. With that in mind, resistance in the DAX looks like it could be formidable to overcome. Should the DAX continue to clear through 10000/100 with authority, though, then we will look to the 10250/300 vicinity as our next strong zone of resistance.

We will be watching that 9730/820 zone as support on any decline which may unfold from here.

DAX (Ger30) Daily

DAX: Pressing Resistance Ahead of BoE Meeting

See what our analyst view to be in store this quarter for FX, equity indices, and commodities. Sign up and receive our forecast today.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX.

You can email Paul at instructor@dailyfx.com with any questions or comments.

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

DISCLOSURES