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
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
Wall Street
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
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
  • 🇲🇽 Interest Rate Decision Actual: 4.5% Expected: 4.25% Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-09-24
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.97% Wall Street: 0.92% France 40: 0.66% FTSE 100: 0.62% Germany 30: 0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SmPAA5CRPL
  • RT @FinancialJuice: US JUDGE: THE US MUST DELAY TIKTOK DOWNLOAD BAN OR FILE LEGAL PAPERS BY FRI. 2:30 PM ET DEFENDING THE BAN. - COURT ORDE…
  • Fed's Barkin says markets appear to be more concerned about inflation being low, not high $SPX $XAUUSD
  • Heads Up:🇺🇸 Fed Williams Speech due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-24
  • Heads Up:🇲🇽 Interest Rate Decision due at 18:00 GMT (15min) Expected: 4.25% Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-09-24
  • Fed's Barkin says he views moderate inflation mostly delivered from market power and price transparency $SPX
  • The S&P 500 breakdown is testing the first major zone of support and we’re looking for a reaction. Get your S&P 500 technical analysis from @MBForex here:https://t.co/JrTNmQ5c7g https://t.co/7HSxMUZYWn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.89%, while traders in EUR/GBP are at opposite extremes with 65.56%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/7tkZBRqU8Z
  • Heads Up:🇺🇸 Fed Evans Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-24
DAX: Choppy Daily Chart, Turning to Shorter-term Development

DAX: Choppy Daily Chart, Turning to Shorter-term Development

2016-09-02 08:45:00
Paul Robinson, Strategist
Share:

What’s inside:

  • The DAX is trying to hold onto support
  • Short-term channel development taking shape
  • Today’s US jobs report could cause some market gyrations

On Wednesday, we were taking note of the DAX turning higher from a key area of support, but had this to say about what posed risk to this view: “The biggest risk in the very near-term appears not to be sellers stepping in and bullying the market lower, but rather a lack of good movement as we work our way through the remainder of the dog days of summer.”

Well, fortunately, the dog days of summer are nearly over as the calendar has flipped to September. But, the price action in the DAX still looks ‘wish-washy’ as it attempts to forge out a low above 10500.

The overall trend is higher since bottoming post-Brexit, with the current sideways price action potentially acting as a period of consolidation before launching higher.

However, it will need to do so soon or else the lack of sponsorship from a steadfast level of support could be a tell that the recent malaise in price behavior could be a sign the DAX wants to roll over.

Taking a closer gander at the intra-day time-frames (2-hr in this case) we can see a well-defined channel taking shape since the third week of August.

The bullish take-away is the DAX rejecting the lower parallel and eventually turning up and clearing the recent peak at 10689 and the upper parallel. The bearish take-away from that development is that the market is working on a lower high scenario from the 8/15 peak, and could result in a breakdown below not only the lower end of the channel, but 10386 as well. A break below that threshold would mark a lower low, and more importantly act as a breach of the former resistance turned support the DAX has recently been using as a trough.

The alternative should the channel turn into more whip-saw trading, is the development of a triangle on the daily with a few more ‘ups and downs’.

This is the problem with this type of market right now, a few different things could be going on, and until we see a strong push in one direction or another we can only draw up scenarios and not concrete conclusions.

DAX Daily/2-hour

DAX: Choppy Daily Chart, Turning to Shorter-term Development

Today, at 12:30 GMT the US jobs report will be published and is a potential source of volatility. Expectations are for a print of 180k new jobs added in August, with a slight downtick in the unemployment rate from 4.9% to 4.8%. The market will also be watching for signs of wage inflation through the average hourly earnings figure, which was 2.6% YoY in July. Given the upcoming FOMC meeting later this month, data which is well above or below expectations could have an outsized impact on the short-term direction of global equity markets later today.

Find out what profitable traders are doing that others who struggle to turn a profit aren’t – “Traits of Successful Traders”.

---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