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
  • USD/JPY trades to a fresh monthly (110.57) amid the pickup in longer-dated US Treasury yields, and the exchange rate may stage a larger advance over the coming days. Get your market update from @DavidJSong here:https://t.co/dlNXOrJnM9 https://t.co/LCQd26W1zF
  • US yields continue to climb, with the 10-year Treasury yield trading above 1.45% $ZN $ZB https://t.co/N4EDfwD3nZ
  • $USDJPY bull thesis appears quite constructive. Technicals show topside breakout above trend resistance following a period of consolidation. Bond yields providing the fundamental catalyst. Eyes on Aug/YTD highs. A broad-based deterioration in market sentiment poses downside risk. https://t.co/AazskXGjHq
  • WTI posting another session of strong gains, currently flirting with the 74 handle $CL #Oil #OOTT https://t.co/oYnm2OYRky
  • The New Zealand Dollar’s bullish breakout attempt in early-September was rebuffed. Price action at the end of the month is telling a different story. Get your market update from @CVecchioFX here:https://t.co/AquMSrssne https://t.co/DtFuFfrS7Q
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year) https://t.co/Nome25d9Bt
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView https://t.co/iCnRSo9N4V
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
DAX Chart Analysis – Bounce Could Be Near, but Damage Significant

DAX Chart Analysis – Bounce Could Be Near, but Damage Significant

Paul Robinson, Strategist

DAX Highlights:

  • DAX decline continues, could be due for a bounce soon
  • But important technical levels and lines have already been broken
  • A bounce may prove to struggle to gain much momentum before sellers show back up

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.

DAX short-term oversold, but technical damage signficant

The fall from the record high as been fierce, with only marginal bounces at best alleviating the selling pressure. Our focus recently shifted towards important support as the next likely spot for the DAX to sell off to, but those levels have failed.

All in them in aligned in the same vicinity – the trend-line from June 2016, the Jan 2 low, and the 200-day MA. Today’s gap, while there could still be a turnaround, has the DAX clearly trading below the trio of levels. Given the importance of this confluence, if the DAX doesn’t turnaround and close above them today, we’ll have an official daily closing break.

Given the straight-line sell-off, the DAX may find some short-term relief, but given the proximity of the aforementioned levels, it only has about 100-200 points from current levels (12750/12860) before sellers could show up again (old support, new resistance).

Looking to the left on the chart, there are minor levels (including one around the current price at 12676), but nothing truly meaningful until ~12300, where last summer the market traded around this level as support and then resistance for a couple of months. Below there, the late-August swing-low at 11868 comes into play.

For now, we’ll stick with a downward bias and look to failed attempts to rally as potential opportunities for ‘would-be’ sellers to join in on the decline.

Check out this guide for ideas on Building Confidence in Trading

DAX Daily Chart

DAX daily chart, below support

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