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
Bearish
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
Wall Street
Bullish
Gold
Bullish
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
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
Breaking news

Bank of England Tapers QE Purchases, leaves Bank Rate & APF Target Unchanged

Real Time News
  • 🇺🇸 Initial Jobless Claims (01/MAY) Actual: 498K Expected: 540K Previous: 590K https://www.dailyfx.com/economic-calendar#2021-05-06
  • 🇺🇸 Jobless Claims 4-week Average (MAY/01) Actual: 560K Previous: 621K https://www.dailyfx.com/economic-calendar#2021-05-06
  • 🇺🇸 Continuing Jobless Claims (24/APR) Actual: 3690K Expected: 3620K Previous: 3653K https://www.dailyfx.com/economic-calendar#2021-05-06
  • 🇨🇿 CNB Interest Rate Decision Actual: 0.25% Expected: 0.25% Previous: 0.25% https://www.dailyfx.com/economic-calendar#2021-05-06
  • $EURUSD support hold at that 1.2000 spot and then falling wedge reversal fills in. v clean https://t.co/DYgwmx5q78 https://t.co/hSDyTFrBKw
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.97%, while traders in Wall Street are at opposite extremes with 75.53%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/SitVyWezLj
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.52% 🇪🇺EUR: 0.45% 🇨🇦CAD: 0.18% 🇬🇧GBP: 0.03% 🇯🇵JPY: 0.00% 🇳🇿NZD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/MWkCbzgRbd
  • Heads Up:🇺🇸 Initial Jobless Claims (01/MAY) due at 12:30 GMT (15min) Expected: 540K Previous: 553K https://www.dailyfx.com/economic-calendar#2021-05-06
  • Heads Up:🇺🇸 Jobless Claims 4-week Average (MAY/01) due at 12:30 GMT (15min) Previous: 611.75K https://www.dailyfx.com/economic-calendar#2021-05-06
  • Heads Up:🇺🇸 Continuing Jobless Claims (24/APR) due at 12:30 GMT (15min) Expected: 3620K Previous: 3660K https://www.dailyfx.com/economic-calendar#2021-05-06
DAX: Pressing Resistance Ahead of BoE Meeting

DAX: Pressing Resistance Ahead of BoE Meeting

Paul Robinson, Strategist

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