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
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC - https://t.co/lxd5fZnn4H
  • 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/8A1QhwMVKo https://t.co/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
  • 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/Yl9vM7kO6a https://t.co/otJwnuR7qe
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/s4lZWdJoXV
  • The US Dollar Index traded higher last week, sustaining its broader uptrend. Conflicting technical signals urge caution, but the directional bias remains skewed to the upside. Get your weekly USD technical forecast from @FxWestwater here: https://t.co/jcwhcsUBEN https://t.co/tKrlrRZlZn
DAX Remains Global Laggard, Favored Market for Shorts

DAX Remains Global Laggard, Favored Market for Shorts

Paul Robinson, Strategist

What’s inside:

  • DAX stuck below strong resistance over 12300 following break of H&S top
  • Currently in a range-bound trading environment
  • Overall technical landscape favors shorts

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

The other day we were discussing the inverse relationship between the DAX and the euro and suggested that it may be possible if the euro declines we see some life come into the DAX. It was also said that while it’s a relationship worthy of attention it can weaken, leaving us without a reliable guide. So far, we’ve seen a little euro weakness and we’ve also seen some risk aversion come into global markets with tensions with North Korea rising, which has resulted in a declining DAX. The risk-off environment at this juncture is very modest at this time, however. Very. You’ll know real risk-off when it hits. This isn't it. Yet.

The technical outlook for the DAX remains the same – trending sideways to lower within the context of a triggered ‘head-and-shoulders’ top. Even though just a couple of days ago the market was trading above the neckline of the pattern, the 12300/40 region has been very difficult to overcome. On any attempt from here to break on through will also require a breakout above the trend-line running down off the June high. A lot to overcome before possibly turning the outlook bullish.

This morning we are trading right near several lows created over the past couple of weeks just below 12100 (12092 is the precise low). We could bounce around between resistance in the 12300-area and roughly 12100 in a range-bound trading environment. But if we break below 12092 look for not only the French election gap to fill at 12048, but for a drop to develop below 12000. Levels to watch come in at 11941, 11906(200-day) and then 11850.

The bottom line is the DAX has its work cut out for it to improve its outlook for the bulls, but doesn’t necessarily mean it will be an easy road for the bears. As long as the DAX stays below beforementioned resistance just over 12300 then the trading bias is from the short-side with in mind we’ll have a range-bound market environment with a negative tilt to it and the possibility of a breakdown looming.

DAX: Daily

DAX Remains Global Laggard, Favored Market for Shorts

Paul conducts webinars Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of 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