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
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/kloJCFmJty
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/wwxKQFibW6
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC - https://t.co/lxd5fZnn4H
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • 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/xKkBwu951j
  • 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/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/otJwnuR7qe
DAX & CAC Technical Outlook Remains Bearish, Eyeing Big Support Test Soon

DAX & CAC Technical Outlook Remains Bearish, Eyeing Big Support Test Soon

Paul Robinson, Strategist

DAX/CAC Technical Highlights:

  • DAX remains a target for sellers below recently broken support
  • Neckline down near 11600 next objective, very important support
  • CAC poised to trade lower, with a gap-fill and ~5050/000 targeted

For the intermediate-term fundamental and technical outlook for the DAX & Euro, check out the Quarterly Report.

DAX remains a target for sellers below recently broken support

Last week, the DAX broke 12104, continuing weakness out of the previously developing descending wedge (building since May). So far, the bounce has been uninspiring and set to lead to further weakness as long as momentum doesn’t pick up and take price back through the aforementioned level on a closing basis.

Looking lower, there isn’t any meaningful support until the March low and neckline of the head-and-shoulders pattern dating back to June of last year. This puts support in the zone of 11726 down to roughly 11600.

That will be a very important test should we see it soon, as not only are Euro-zone equities weak relative to the U.S. markets (which could be on the verge of rolling over), the 15-month-long head-and-shoulders formation suggests a very large drop/bear market will be in store should the pattern exert its full bearish potential. Based on the height of the formation a drop into the 9000s or worse is in the cards.

For now, the market is trading weak and below prior support (now resistance, ~12104) and above the next level of support (~11726/11600). On that, traders operating from the short-side of the tape continue to have the upper hand.

DAX Daily Chart (Sub-12104, has neckline targeted)

dax daily chart, eyeing 11726/11600

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

CAC poised to trade lower, with a gap-fill and ~5050 in mind

The CAC is trading below the June 2016 trend-line and at the bottom of a similarly shaped wedge as to the one recently seen in the DAX. A sustained break below last week’s low will have a clean new swing-low from June in place.

Next up on weakness is the big gap from April from 5213 down to a fill of the gap at 5141. Beneath there big support arrives in the vicinity of 5050, with it extending down to the August 2017 low just under 5000. This area is effectively the equivalent of the DAX’s neckline, making it a major level of support.

CAC Daily Chart (Gap, ~5050/000 eyed)

cac daily chart, gap, 5050/000 eyed

For live weekly updates on the DAX, CAC, and other indices, join me live on Tuesdays for ‘Indices and Commodities for the Active Trader’. Also, check out this piece on how to trade the DAX.

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