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
Mixed
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
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • PBoC sets Yuan reference rate at 6.6725 against the US Dollar - BBG
  • #Silver retracing its losses earlier in the session as price carves out a Bear Flag pattern With resistance at $25 holding firm, further losses appear in the offing A daily close below the 21-DMA (24.20) may open the door for a retest of 61.8% Fib support (21.74) $SLVR $SLV https://t.co/rCl3Ms3FB3
  • The Nasdaq 100 index looks set to pull back amid bearish momentum in the near term. The 50-Day Simple Moving Average (SMA) line may serve as an immediate support. Get your #equities update from @margaretyjy here: https://t.co/5Axsg6gAdd https://t.co/rToHnPLSeS
  • $GBPUSD the outlier early in the session, up marginally as UK-EU Brexit negotiators extend talks until October 28 https://t.co/ey92YW4RJw
  • #CrudeOil down 1.95% on the back of tightening #COVID19 restrictions in several European nations $EURUSD nudging marginally lower https://t.co/PUWTfKl08f https://t.co/XuyQOzV6sj
  • Market Snapshot Broad risk-off tilt to kick-off APAC trade #Gold and #CrudeOil prices plunging lower alongside the risk-sensitive $AUDUSD Haven-linked $JPY and $USD moving higher against their major counterparts
  • Wall Street Futures Update: Dow Jones (-0.504%) S&P 500 (-0.536%) Nasdaq 100 (-0.484%) [delayed] -BBG
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/zSCf8azESa
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/ZJOEtpGUIq https://t.co/tJWOXZCoBw
DAX: Short-term Trading Levels in Play

DAX: Short-term Trading Levels in Play

2016-10-31 09:57:00
Paul Robinson, Strategist
Share:

What’s inside:

  • The DAX continues to chop around
  • Swing trade opportunities difficult, but still opportunities on the very short-term time-frame
  • Hourly chart in view

Since our last post on Thursday, the DAX slipped below the late Sep/early Oct peaks during the past two sessions. Last Tuesday, following the double rejection on an attempted move to the best levels of the year beyond the Aug/Sep highs, we took a negative stance on the index, but strong conviction is lacking.

In this choppy trading environment, turning views into money has proven difficult for the swing-trader; it’s been like this for several months now. But for traders who operate on time-frames of a couple of days or less (day-traders) there are still levels and technical developments which we can operate off of.

Before we delve into the short-term chart, keep in mind, on the daily the DAX is below those late-summer twin peaks around 10700, with nothing substantial until the June to current trend-line in the lower 10500s. This leaves the DAX between an area of support and resistance.

Dropping down to the hourly chart: A steady set of parallels (channel) is forming off the 10/25 highs. This keeps the immediate picture turned lower with lower highs and lower lows in place. The market needs to overcome the top-side parallel and Friday high at 10716 before any sort of upward momentum can potentially kick in. Beyond there we will look to 10773 and the year at 10827.

Continued trade below the upper parallel keeps the bias pointed lower to neutral at best, and could bring into play the Friday low at 10583 and a trend-line extending back to the 9/30 Deutsche Bank-induced swing low.

DAX: 1-hour (daily)

DAX: Short-term Trading Levels in Play

Created with Tradingview

Check out our Q4 Forecasts and Trading Guides.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please sign up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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

DISCLOSURES