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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
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
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Just saw a financial market title that referenced the 'Warren Buffet of England'. Will demand family member refer to me as the Warren Buffet of the Household
  • 🇳🇿 Inflation Rate QoQ (Q4) Actual: 0.5% Expected: 0% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇳🇿 Inflation Rate YoY (Q4) Actual: 1.4% Expected: 1% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • Heads Up:🇦🇺 Markit Manufacturing PMI Flash (JAN) due at 22:00 GMT (15min) Previous: 55.7 https://www.dailyfx.com/economic-calendar#2021-01-21
  • Heads Up:🇦🇺 Markit Services PMI Flash (JAN) due at 22:00 GMT (15min) Previous: 57.0 https://www.dailyfx.com/economic-calendar#2021-01-21
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Silver: 0.49% Oil - US Crude: -0.11% Gold: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/u4nNitXQc4
  • 🇳🇿 Business NZ PMI (DEC) Actual: 48.7 Previous: 55.3 https://www.dailyfx.com/economic-calendar#2021-01-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Wall Street are at opposite extremes with 69.28%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/GmB6dVyyf9
  • Heads Up:🇳🇿 Inflation Rate QoQ (Q4) due at 21:45 GMT (15min) Expected: 0% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-01-21
  • Heads Up:🇳🇿 Inflation Rate YoY (Q4) due at 21:45 GMT (15min) Expected: 1% Previous: 1.4% https://www.dailyfx.com/economic-calendar#2021-01-21
DAX Dripping Lower, Bearish Outlook Remains Intact

DAX Dripping Lower, Bearish Outlook Remains Intact

Paul Robinson, Strategist

What’s inside:

  • DAX below neckline of ‘head-and-shoulders’ topping formation
  • On its way to filling gap from first round of the French elections
  • Key levels to watch including measured move target for H&S pattern

Find out in our Q3 Forecast what’s driving the DAX and Euro this quarter.

The last time we were discussing the DAX it was stubbornly hanging onto support around the neckline of the ‘head-and-shoulders’ (H&S) top we’ve been focused on. On Friday, it appeared we were finally headed for a clean break of the neckline and fill of the April gap (French elections). The break wasn’t the most convincing by the close of the session, but nevertheless the market is in the gap and trading below the neckline.

With the H&S top having officially triggered we should continue to see weakness develop. This type of formation, as is the case with any technical pattern, has a measured move target (MMT) which is derived by its size (height subtracted from the neckline, in this case). That points to approximately 11630. But that is a symmetry-derived target and doesn’t take into account actual price points. With that said, there is support along the way which we’ll want to keep an eye on. The first up is the gap-fill not far below at 12048, then the swing-low in April at 11941, followed by a swing-low in March at 11850. The March swing-low is fairly minor in terms of its relevance, but the fact the 200-day MA clocks in right around the same point makes ~11850 a big support level. Then comes the measured move target at approximately 11630.

What will turn a bearish view around? The DAX has its work cut out for it before we begin seeing a bullish price sequence develop. For now, we’ll stick with a short bias until we see price action suggest we should do otherwise, and update as things progress. Stay tuned...

See the Webinar Calendar for a full line-up of upcoming live events with DailyFX analysts.

DAX: Daily

DAX Dripping Lower, Bearish Outlook Remains Intact

---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