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
More View more
Real Time News
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year) https://t.co/Nome25d9Bt
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView https://t.co/iCnRSo9N4V
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
  • Kansas City Fed President Esther George says: - The labor market friction is fading barring a resurgence of virus - A 'normal' economy is likely to remain elusive for some time - Asset buying effects complicate the judging rate change plan
DAX Technical Outlook: Falling Back Towards Support

DAX Technical Outlook: Falling Back Towards Support

Paul Robinson, Strategist

What’s inside:

  • The DAX taking a step back off recent highs
  • Falling towards rising and horizontal support
  • As long as support holds, then looking for a push towards resistance surrounding 10900

We noted in Tuesday’s commentary that the small reversal bar on Monday cast a bit of doubt in the short-term as to whether the DAX could continue without first pulling back in modest fashion. Yesterday, we saw a little bit of weakness, today so far we are starting out that way as well.

On a further decline our first noted level of support is the rising trend-line off the July 6 pivot which crosses under the pullback low created on August 3. At this time, it could also coincide with the April peak level of 10486, or roughly thereabout (support/resistance is not typically an absolute level, but rather a zone.) We look for this to be a test, hold, then an eventual push higher towards a fairly significant area of resistance surrounding 10900; this view hasn’t changed from yesterday.

DAX Daily

DAX Technical Outlook: Falling Back Towards Support

What would clearly call this outlook into question would be a strong push below the before mentioned support area. With that said, waiting for support to be tested, then a turn upward in momentum gives traders a chance to enter and then have a backstop (beneath the low of the turning point at support) from which to place stop losses. If the market sails on through support with no turn, then no entry and we will need to reassess our view.

Find out what separates successful traders from the rest in our trading guide, “Traits of Successful Traders”.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX.

He can be emailed at instructor@dailyfx.com with questions or comments.

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

DISCLOSURES