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
Bullish
Oil - US Crude
Bullish
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
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/4wlRjBTCzK
  • The #Dollar has bottoming potential, but that is starting to lose weight as it fails to sustain any lift; next week could be a big one for #USD’s near-term outlook. Get your #currencies update from @PaulRobinsonFX here: https://t.co/IifHjik7gM https://t.co/R9b4jdTPnO
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/lW1rqjpy0x
  • I’d like to thank my followers, I just reached 5,000 which is quite a milestone for someone that isn’t a huge fan of the platform. Thank you all very much ❤️
  • Technology stocks continue to be a source of weakness for US equities, undermining risk appetite. Meanwhile, US-China tensions simmer beneath the surface creating uncertainty. Get your #equities update from @PeterHanksFX here: https://t.co/yH8oTwT3iW https://t.co/tvfrXThyaC
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/Xi9QU3ADPF
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/cQwbeZ6Feq
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • 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/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
DAX Technical Analysis: Souring Risk Appetite & Rising Euro Weighing

DAX Technical Analysis: Souring Risk Appetite & Rising Euro Weighing

2017-11-15 09:02:00
Paul Robinson, Strategist
Share:

What’s inside:

  • DAX breaking down, testing important support
  • Global risk appetite turned on its head, pressuring stocks, but so is…
  • The euro strengthening and busting the ‘head-and-shoulders’ pattern

Find out where our analysts see the DAX and Euro ending the year in the DailyFX Q4 Forecasts.

Last week, when we looked at the DAX we were discussing the double tailwind in place for major European markets, strong global risk appetite for stocks and a weak euro. Both of which went from supportive to destructive as stocks, globally, are in retreat mode and EURUSD isn’t making good on the topping ‘head-and-shoulders’ pattern. More on the euro in a bit…

The Nikkei, which was the biggest upside impresser in recent weeks, put in an extremely violent turnaround day last week after a ~20% run. It is likely to rest or keeping pulling back for now. U.K. stocks have been weak since the FTSE 100 failed to cross over the 7500-area with any real conviction for the fourth time since June. In the world’s largest stock market – the U.S. – the S&P 500 has been a hold-out, but showing signs of vulnerability as discussed in yesterday’s webinar.

Getting to the technical picture in the DAX, specifically, it’s at a bit of spot here as it breaks down through the top-side trend-lines extending over from peaks in 2000 and 2015. This top-side slope proved problematic for much of last month before the German benchmark launched higher on the 10/26 ECB meeting. It was big resistance, but not looking to be big support right now. The area right around 12900 marks the bottom of that multi-week consolidation then, and also the prior June record high. This will be important to hold. This week.

With the DAX outside of the nice neat upward sloping channel lines off the August low, a failure to turn higher and willingness for dip-buyers to step in aggressively would be a warning sign that we are in for a deeper retracement, with the mid-12600s in focus.

See this guide for ideas on how to Build Confidence in Trading

DAX: Daily

DAX Technical Analysis: Souring Risk Appetite & Rising Euro Weighing

Keep an eye on the euro, it’s in the process of completely wrecking the ‘head-and-shoulders’ top it began dropping lower from on the ECB meeting. The crossing above the trend-line off the September high is a sign that more momentum may be on its way. With the one-month inverse correlation of the euro to the DAX sitting at -85%, the single-currency's impact is not going unnoticed.

EURUSD: Daily

DAX Technical Analysis: Souring Risk Appetite & Rising Euro Weighing

Bottom line: If we see weakness out of global stock markets and a failure for buyers to soon show up along with further strength out of the euro, the DAX could be in for a bit of a tough stretch.

---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