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
Bullish
GBP/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
USD/JPY
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
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • If you are interested in UK equities, pre- and post-election, it's well worth taking a few minutes out to listen to this podcast 👍👍 @JeremyNaylor_IG @JoshWarner_IG @DailyFX https://t.co/hnB3c7aP59
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.02%, while traders in US 500 are at opposite extremes with 76.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dFrubKes93
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: -0.03% Silver: -0.22% Oil - US Crude: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7AaenKr6dx
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.21% 🇯🇵JPY: -0.01% 🇨🇦CAD: -0.02% 🇨🇭CHF: -0.08% 🇳🇿NZD: -0.11% 🇬🇧GBP: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/WRIE0S7Dwx
  • Crude Oil Prices May Fall as the Fed Strikes a Cautious Tone - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2019/12/11/Crude-Oil-Prices-May-Fall-as-the-Fed-Strikes-a-Cautious-Tone.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #crudeoil #FOMC
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: 0.03% Wall Street: -0.01% Germany 30: -0.03% France 40: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/dFVRjzGoZc
  • The #Fed rate decision and market reaction will be covered live by my colleague @JohnKicklighter, signup for the event below! https://t.co/xDN6nNRvt1
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.16%, while traders in US 500 are at opposite extremes with 77.23%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/6hcL6283Yf
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.13% 🇯🇵JPY: -0.02% 🇨🇦CAD: -0.02% 🇨🇭CHF: -0.06% 🇬🇧GBP: -0.11% 🇳🇿NZD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/CwF9QmReEw
  • $USDHKD: “If the HIBOR-LIBOR spread increases again, and at the same time the USD/HKD exchange rate returns to 7.85, money could indeed be moving out of Hong Kong.” - via @ING_Economics https://t.co/xWYns19eoQ
DAX Intriguing, CAC 40 Even More-so; Watch for a Monthly Close Above 16 ½ Year Trend-line

DAX Intriguing, CAC 40 Even More-so; Watch for a Monthly Close Above 16 ½ Year Trend-line

2017-03-30 08:37:00
Paul Robinson, Currency Strategist
Share:

What’s inside:

  • DAX possible RST forming at April ’16 trend-line
  • CAC 40 working on a weekly/monthly close above trend-line extending down from the 2000 peak
  • Important levels outlined

Join us for webinars conducted daily covering a host of topics including analysis, education, and coverage of fundamental events. See the Webinar Calendar for details.

On Monday, we discussed the DAX and CAC and how they were in the process of negating bearish price sequences, and that the price swings this month were taking on the form of a consolidation making the market look more bull than bear. Both indices subsequently broke out to new highs; Bulls 1, Bears 0.

The DAX is trading at the underbelly of two trend-lines (April ‘16/December), which given the confluence may present as problematic. However, they aren’t considered major resistance given they are running in the same direction as the market. Unless…

We also have a price sequence at hand which could lead to a sharp move in either direction. A reverse symmetrical triangle (RST) or ‘megaphone’ pattern is in the works. These can be reversal or continuation patterns. The increasing price swings of higher highs and lower lows which make up the expanding triangle indicate growing indecision in the marketplace. If it is to resolve itself to the upside a pullback is likely first, then a hold of that dip and up we go. If it is to become a top, the initial down-move may start to turn back higher only to fail below any short-term swing-low which is formed. Or, the market may all-together not even bother with pulling back, but if it does then we’ll be watching for the beforementioned price action for indications as to what the pattern may portend.

On further strength, there is a trend-line running higher from August to watch around 12300, but the big level to keep an eye on is the 2015 record high of 12391. Near-term support comes in at the prior peak of 12156.

DAX: Daily

DAX Intriguing, CAC 40 Even More-so; Watch for a Monthly Close Above 16 ½ Year Trend-line

Created with TradingView

Despite its correlation to the DAX, the CAC isn’t carving out the same RST pattern. But it could be doing something which is even more interesting. It’s early, with still the rest of today and tomorrow before the week and month are in the books, but a strong weekly/monthly close above the trend-line running down from the 2000 highs could be a rather significant event. If the CAC is to rip on a big breakout, then the DAX isn’t going to get left behind, only perhaps in magnitude. On a confirmed breakout, the first notable levels of resistance arrive at 5217 and then 5283.

CAC40: Monthly

DAX Intriguing, CAC 40 Even More-so; Watch for a Monthly Close Above 16 ½ Year Trend-line

Created with TradingView

Looking for trading ideas? See our Trading Guides.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing 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

News & Analysis at your fingertips.