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
Bearish
Oil - US Crude
Bearish
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
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
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • 🇲🇽 GDP Growth Rate YoY Final Actual: -1.4% Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.64%, while traders in US 500 are at opposite extremes with 75.52%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5aSCLBqXc1
  • Heads Up:🇲🇽 Economic Activity YoY due at 11:00 GMT (15min) Expected: -3.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇲🇽 GDP Growth Rate YoY Final due at 11:00 GMT (15min) Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/rIrzpGTgvn
  • Chinese President Xi says will step up preparedness for military combat
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 1.31% Oil - US Crude: 0.90% Gold: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LKcIsCQeTg
  • #DAX30, #dowjones : la reapertura económica lidera los avances #trading https://t.co/GoI9cOuD9A
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.28% 🇦🇺AUD: 1.17% 🇬🇧GBP: 1.01% 🇪🇺EUR: 0.57% 🇨🇭CHF: 0.35% 🇯🇵JPY: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eMQxa6E4eU
  • Coming up at half past the hour: my weekly webinar on market #sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?ref-author=essex&CHID=9&QPID=917711
DAX: Consolidating Below Major Resistance

DAX: Consolidating Below Major Resistance

2016-11-23 08:55:00
Paul Robinson, Strategist
Share:

What’s inside:

  • The DAX continues to chop around between support and resistance
  • General risk appetite helping keep Europe buoyed
  • U.S. holiday to impact global markets for remainder of week

Check out our webinar calendar for a full list of all upcoming live events.

In Monday's post, we looked at pattern set-ups in the DAX on the hourly chart, which could have potentially worked out one of a couple of different ways – a head-and-shoulders or triangle. So far, it is working out to be nothing at all, which is always the third scenario, as the market continues to chop around between support and resistance. We’ll revisit the short-term chart at a later time.

The DAX is caught between its inability to find the buyers needed to push through major resistance surrounding the 10800 level and not enough selling pressure to post a closing daily bar below support. General global risk appetite for stocks is helping keep Europe buoyed – Asian and U.S. markets are humming along.

Provided there remains a bid-tone in global risk and the consolidation holds up below the important 10800 area, the probable scenario is for the DAX to eventually take out resistance and trade to new heights for the year. We will be patient in waiting for a closing daily bar well into the 10800s before allowing conviction to grow. A drop below the 11/10 low at 10576 would be considered a solid negative.

DAX: Daily

DAX: Consolidating Below Major Resistance

Created with Tradingview

Head’s up, tomorrow global markets will be without the influence of U.S., as their markets will be closed for the Thanksgiving holiday. Expect participation to be low on Friday, too, as the weekend becomes extended. Holiday trading conditions, barring an unforeseen news event, will likely spill over to other global financial markets.

Slower market conditions are always a good time to brush up and develop new skillsets, check out our Trading Guides designed for traders of all experience levels.

---Written by Paul Robinson, Market Analyst

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

News & Analysis at your fingertips.