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. See our updated Privacy Policy here.

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
Subscribe
Please try again
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
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
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
More View more
Real Time News
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/AkE7bFRWAt
  • $GBPUSD continues to trade in ranges as volatility dwindles. UK data to play second fiddle to FOMC. Get your market update from @JMcQueenFX here: https://t.co/T0Eg4KaENB https://t.co/GMmZa5L0Il
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/wlGgQrcK3X
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/qnQ8Cx0DKv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lIUxpfSem3
DAX: Small ‘Gap-and-Trap’ on Macron Victory

DAX: Small ‘Gap-and-Trap’ on Macron Victory

Paul Robinson, Strategist

What’s inside:

  • Macron landslide win leads to small gap higher, but quickly filled and then some; small ‘sell-the-news’ scenario
  • DAX doesn’t have any resistance levels above as it trades in record territory
  • Looking to previously overcome lines of resistance as potential support

Can the DAX continue its rise during the rest of Q2? See what our analysts have to say in our quarterly forecasts.

We have a winner in France. It was a landslide victory, with Macron receiving 66% of the vote and Le Pen only 34%. Major polls were generally showing a gap of 15-20% between the two candidates heading into the weekend, so while they were generally right, they weren’t as bullish on Macron as what the actual vote revealed.

As discussed in the weekly forecast, it looked probable that there might be a bit of a ‘sell-the-news’ scenario on a Macron victory given the sharp run-up we saw in the CAC 40/DAX leading up to yesterday’s outcome. This morning, the DAX gapped higher by about 40 points and quickly sold off to fill its small gap and then some. In France, the CAC 40 gapped to a lesser extent and is currently down the on the day by about 60 bps at the time of this writing. Buy the rumor, sell the news. Although, admittedly, on this end we were looking for a larger 'gap-and-fill' situation on an initially euphoric response to the outcome.

Moving past the relatively benign reaction to the news and on the to the technical landscape, the DAX is strong as it sits in record territory. The two top-side trend-lines we had penciled as potential resistance have both been overcome. While minor in nature, had the market reacted to them with any kind of force we would have sat up and paid attention. Now that the August and February t-lines have been crossed we will look to them as support. Looking higher, nothing but space in terms of resistance. It doesn’t mean the market is ready to run away, it just means we don’t have any good levels or lines of resistance to lean on.

For now, we will continue to respect the trend and look to the market to hold support on dips, and until we see bearish price action set in we will run with this bias.

DAX: Daily

DAX: Small ‘Gap-and-Trap’ on Macron Victory

Created with TradingView

Paul conducts webinars every week from Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of all upcoming live events.

---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