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
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/3bjMHrUZRJ
  • 🇹🇭 Balance of Trade (AUG) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • Heads Up:🇹🇭 Balance of Trade (AUG) due at 03:30 GMT (15min) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cC4v7H https://t.co/uhBNvCTHrW
  • Evergrande USD bondholders say have yet to receive interest due Thursday -BBG
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/J0vSWHaADc
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/nmP0MX8LGM
  • 🇯🇵 Core Inflation Rate YoY (AUG) Actual: 0.0% Expected: 0% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2021-09-23
  • 🇯🇵 Inflation Rate Ex-Food and Energy YoY (AUG) Actual: -0.5% Previous: -0.6% https://www.dailyfx.com/economic-calendar#2021-09-23
  • 🇯🇵 Inflation Rate YoY (AUG) Actual: -0.4% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-09-23
DAX Technical Analysis – Risk Sentiment Sours, Too Much for Poor Posturing

DAX Technical Analysis – Risk Sentiment Sours, Too Much for Poor Posturing

Paul Robinson, Strategist

Highlights:

  • DAX dives with risk sentiment souring, euro not the issue at the moment
  • Next support level arrives around 13137, then 13000/12900 (trend-lines)
  • Shorts look to continue having the upper hand for now

For longer-term fundamental and technical analysis on the DAX & Euro, and our top trade ideas for 2018, check out the DailyFX Trading Guides page.

Risk sentiment sours, takes weak DAX with it

Last week, when we looked at the DAX we noted that euro strength might not be an issue for European equities, but rather waning risk appetite for stocks, globally, could become the bigger problem. The euro has chopped sideways since, but the Nikkei, FTSE, and others have been rolling over. The S&P 500 was showing signs of instability in its upward ascent.

So far, this week we have seen further deterioration in risk sentiment, with the S&P 500 finally giving up some ground, and more selling in other key global markets. We may not be in full-blown ‘risk-off’ mode, but it’s enough that the already precarious positioning of the DAX led to more selling the past couple of sessions.

Technical levels and considerations

With yesterday’s close below 13222 (a small lower-low from 1/25), the DAX is positioned for lower prices. Next up is 13137, the 1/17 low. With an acceleration in selling below support the August trend-line will quickly come into play, and then the more important trend-line dating back to June 2016. These two lines arrive in the vicinity of 13000/12900.

From the tactical standpoint, the path of least resistance is down, favoring short-sellers. To turn the picture bullish, it will require momentum to turn around, and soon; even then there has been a decent amount of technical damage since notching a record high just last week.

Check out this guide for ideas on Building Confidence in Trading

Chart – DAX: Daily

DAX daily price chart

Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES