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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
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
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
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/Zl7sfu0OT2
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/QqlZ2dQgVv
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/lvIUu5FHoq
  • 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/bpKdIqGxsn
  • 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/jmcAIW4w5k
  • 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/zEEUHZBx7g https://t.co/M9isuvnzqF
  • The British Pound is giving back some of its multi-month gains with some pairs testing notable support despite a positive fundamental backdrop. Get your market update from @nickcawley1 here: https://t.co/6Ct5R0H41F https://t.co/c4rXmMjMrv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/4dhCP5pnxM
  • Gold is facing the neckline of a Double Bottom Pattern after bouncing off a confirmed longer-term trendline. Is a bullish reversal in order? Get your market update from @FxWestwater here: https://t.co/kLXZewWBMd https://t.co/w1Nu0z569m
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/Gn41XsGktg
DAX & CAC Technical Outlook: Hurdles Stand in Way of Advance

DAX & CAC Technical Outlook: Hurdles Stand in Way of Advance

Paul Robinson, Strategist

DAX/CAC Technical Highlights:

  • DAX has trend-line, 200-day ahead as resistance
  • CAC staring down trend-line off May high
  • Price action could further squeeze on a turn lower

For the intermediate-term fundamental and technical outlook for the DAX & Euro, check out the DailyFX Q3 Forecasts.

DAX and CAC both face obstacles, weakness will tighten up price pattern

In recent sessions the DAX reclaimed the broken February 2016 trend-line with the help of stable risk appetite. The recapturing of significant trend support doesn’t have the market sitting in good shape, though, it’s just that it’s not in poor shape. Getting a handle on the DAX hasn’t been easy, but with a turn lower and a little more time that could change.

The trend-line running down off the June high could make up the top-side line of a descending wedge should we see the DAX trade lower in the days/weeks ahead. The pattern is about 2/3rd the way through, with the bottom of the formation arriving via a relatively flat bottom running over from the low in June under the current month low.

The descending nature of the formation and the fact that German equities are lagging behind the U.S. hints at an eventual breakdown, but we’ll need to reserve further judgment until we have more information to work with. For now, trend-line resistance and the 200-day stand in the way of a larger advance. We’ll play it slowly until market participation comes back and activity picks up as the fall quickly closes in…

DAX Daily Chart (T-line ahead, wedge forming)

DAX daily chart, t-line ahead, wedge forming

Naturally, the CAC chart resembles its German counterpart, but with modestly stronger posturing. Yesterday, the market posted a reversal bar off the top-side trend-line of what could constitute the upper line of the symmetrical triangle. The bottom of the triangle has the trend-line from June 2016 running up through it. In the days ahead, weakness is seen as the risk given overhead resistance and yesterday’s reaction to it. With more time we should gain clarity on which way a coiling market may want to break.

For market sentiment and to learn more about how to use it in your analysis, check out the IG Client Sentiment page.

CAC Daily Chart (T-line, triangle forming)

CAC daily chart, t-line, triangle forming

For live weekly updates on the DAX and other indices, join me live on Tuesdays for ‘Indices and Commodities for the Active Trader’.

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