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
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
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
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • 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 https://t.co/DoVBd1l1oO
  • #Silver is a precious metal commodity that investors use as an inflation hedge and safe-haven asset. Find out what are some strategies and tips to trade silver here: https://t.co/k4tVcFuwxW #CommoditieswithDailyFX https://t.co/zXCSmH2HLX
  • Markets are trying to maintain a bullish tilt as a new week rolls around, a look ahead at the charts of the #Dow, #DAX, and #FTSE. Get your technical analysis on major world indices from @PaulRobinsonFX here: https://t.co/bYjRDvQsdM https://t.co/mbg0rUbv3K
  • Trade conflict is clearly awful for the broad world economy, but some countries are already benefiting from it. More stand to do so. Spotting them early could be profitable. Get your update on the #tradewar from @DavidCottleFX here: https://t.co/og0VAPAqwm https://t.co/xB8hYUj4OA
  • #Gold prices may suffer if better-than-expected US economic data and progress on US-China trade negotiations cool 2020 Fed rate cuts and alleviate demand for anti-fiat hedges. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/3ula2sUpqL $gld https://t.co/2iZwxcm3wP
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/KCZ48rDnhy
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/tTXcw1b7Tp
  • RT @dlacalle_IA: ... “Temporary” Fed plans to double repo market intervention to avoid cash crunch https://t.co/j6N3Qmo6HX
  • RT @HeathaT: The @USTradeRep "fact sheet" on the US-China deal is pretty light on details, but if you're looking for something written down…
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/1H5UASpHb7
DAX: Upon a Busy Intersection, How it Reacts Could Be Important Long-term

DAX: Upon a Busy Intersection, How it Reacts Could Be Important Long-term

2016-07-27 10:53:00
Paul Robinson, Currency Strategist
Share:

What’s inside:

  • DAX continues to trade higher through and into more resistance
  • Big picture potential outlined
  • A pullback looks reasonable off intersection of resistance, but how it responds after is very important longer-term

Yesterday, we noted momentum in the DAX as weakening into a zone of resistance, but thus far despite the rally not holding a great deal of power the index continues to head for higher ground. The zone we had penciled in lies in the 10250/350 vicinity. This area consists of a trend-line off the April highs (currently trading above), peaks from May and June, as well as the back-side retest of the 2011 trend-line. Now that the DAX is threatening to move to the upper-bounds of the noted zone, another point of trend resistance needs to be addressed – the trend-line off the 2015 highs. The intersection is getting pretty busy...

DAX (Ger30) Daily: Dec '15 to Present

DAX: Upon a Busy Intersection, How it Reacts Could Be Important Long-term

With the current advance moving towards the 2015 trend-line, a longer-term pattern could be triggering – an inverse head-and-shoulders pattern with a bull-flag on the verge of breaking out (depends on how you view it).

The top-side trend-line off the 2015 record highs and the 2011 trend-line which the DAX has traded beneath for most of 2016 are currently at the forefront of our minds. The two are interesting which makes for a very pivotal point.

If the DAX can’t clear above the two of them and turns back lower, then the downtrend off the 2015 highs remains in place for now and the inverse H&S/bull-flag scenarios are on hold at best, off the table at worst. However, if the DAX in the coming weeks can move through the intersection unscathed, then the prospects of seeing a continued advance in line with the previously mentioned inverse H&S formation/bull-flag becomes greatly enhanced.

Weekly: 2008 to Present

DAX: Upon a Busy Intersection, How it Reacts Could Be Important Long-term

Getting back to the daily chart, the confluence of resistance suggests a decline off these levels in the short-run is a probable scenario. However, if the DAX can clear above and take out the April high at 10486 at some point, then a much more significant move to the upside could be underway.

Find out why some traders do better than the rest in our trading guide, "Traits of Successful Traders".

---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

News & Analysis at your fingertips.