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
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/f6mraHu6zv
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjKWitK https://t.co/JMsJPQlQ3j
  • 🇳🇱 Consumer Confidence (SEP) Actual: -5 Previous: -6 https://www.dailyfx.com/economic-calendar#2021-09-22
  • A rough start to the week with the cryptocurrency market a sea of red with losses on either side of -10% a common sight.Get your market update from @nickcawley1 here:https://t.co/AUfuM9t7yw https://t.co/lU6HS7fHwr
  • RT @FxWestwater: Gold, Copper Forecast: XAU Eyes FOMC, Evergrande News Sends Copper Flying Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/09/22/Gold-Copper-Forecast-XAU-Eyes-FOMC-Evergrande-News-Sends-Copper-Flying.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/x2sC…
  • Heads Up:🇳🇱 Consumer Confidence (SEP) due at 04:30 GMT (15min) Previous: -6 https://www.dailyfx.com/economic-calendar#2021-09-22
  • PBoC liquidity injection + reports that Evergrande will make its next onshore bond payment ($35.88-million on 23 Sept) is bolstering risk appetite here. Yet, there is still no word on the $83.53-million offshore bond payment also due Thursday. Over to you now, Jpow & Co. https://t.co/3an0K2d5T1
  • 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/t9FlspUVZz https://t.co/ewdevfzq9I
  • Bank of Japan: - Outlook highly uncertain amid Covid - Asset purchase outline unchanged - Cuts assessment of production - exports, production impacted by supply side constraints - BBG
  • Heads Up:🇯🇵 BoJ Interest Rate Decision due at 03:00 GMT (15min) Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-22
DAX Chart Take: What Current Price Action Could Mean Ahead of ECB

DAX Chart Take: What Current Price Action Could Mean Ahead of ECB

Paul Robinson, Strategist

DAX Technical Highlights:

  • Price action volatile but leaving few clues
  • Lower-high, ‘bear-flag’ or gaining its footing?
  • ECB tomorrow to spark volatility opposite the euro

For a broader fundamental and technical outlook on major markets, and to see how our Top Trading Opportunities for 2018 are performing, check out the DailyFX Trading Guides.

Lately, the DAX has been displaying messy price action, see-sawing back-and-forth with few clues as to what all the chop may mean. There is, however, one possibly bearish sequence developing should a lower-high maintain and continue along the path of building of a bear-flag.

The bear-flag, if that is the eventual outcome, is arriving at an interesting spot given the underside parallel of the pattern is also the trend-line rising up from the March low. A break of the pattern would then have trend support violated in addition to pattern validation – a solid combination.

In this situation a lower-low would need to develop below 12547 for momentum to pick up in a meaningful way. Given the choppiness of the bear-flag, this isn’t the easiest scenario and could lead to further horizontal price action. But we’ll run with what is presented to us and adjust accordingly.

For the market to position itself for further strength, the grind higher at some point soon will need to pick up momentum and clear through the 12900s, but then also the trend-line off the record high and the May high at 13204. If it can do that, then a test of the old record high could be in order.

Choppy trading conditions shaking your confidence? Check out this guide for 4 ideas on how to Build Confidence in Trading.

DAX Daily Chart (‘Bear-flag’ potential)

DAX daily chart, possible bear-flag on trend support

For now, respecting trend support and staying sidelined looks like the most prudent play (‘bearish scenario needs validation first). Perhaps once we have the FOMC today, and more importantly, the ECB out of the way tomorrow we’ll have a better handle.

It’s likely the euro and DAX will move opposite one another if the outcome of tomorrow’s ECB meeting has any meaningful impact, given that what’s good for one is not so much for the other and vice versa.

Forex & CFD 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

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