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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
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, 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