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
GBP/USD
Bearish
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
More View more
Real Time News
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
DAX 30 Technical Forecast – 2011 Trend-line to Come Back into View Soon

DAX 30 Technical Forecast – 2011 Trend-line to Come Back into View Soon

Paul Robinson, Strategist

DAX 30 Technical Highlights:

  • DAX turns down from H&S neckline again
  • 2011 trend-line test could be right around the corner
  • A hold keeps sellers at bay, a break could lead to big losses

For the intermediate-term fundamental and technical outlook for the DAX & Euro, check out the Q4 Trading Forecasts.

DAX bottled up, but that could change relatively soon

Last week, I referred to the DAX as ‘caught between the lines’ because of the neckline of the big-picture head-and-shoulders pattern acting as resistance while the 2011 trend-line remains a big line of support. The turn down from the neckline after another gap above it yesterday was fierce, helping to reinforce the area from 11600 up to 11675 as strong resistance.

The 2011 trend-line will quickly come into focus on further weakness, and while the thinking on this end is that at some point it will break due to forces from the broader topping pattern, it is to be treated as support for as long as it holds.

From a tactical standpoint the trend-line doesn’t make for a great spot necessarily to get long given the general weakness, but it does suggest one should be cautious with shorts upon meeting it until we see a clean break. It would be unsurprising to see the market bounce around some more between support and resistance before we have a resolution.

Traders can continue to use these levels/lines as a means for assessing trade set-ups until one side gives-way. A break on the downside is viewed as being quite bearish, as the 2011 trend-line is the only ‘easily’ identifiable object standing in the way of seeing the broad head-and-shoulders top exert its full potential (a move to sub-9k).

Should the DAX recapture the neckline at some point there is still enough of a downward tilt to the chart to make it a difficult uphill battle for longs outside of very short-term holds. Risk of rallies failing at this time are high.

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

DAX Daily Chart (Neckline resistance, 2011 t-line support)

DAX daily chart, neckline proving as resistance, 2011 t-line not far below

DAX Weekly Chart (H&S meets 2011 trend-line)

DAX weekly chart, H&S meets 2011 trend-line

Want to learn more about trading the DAX? Check out ‘How to Trade the DAX’, and join me weekly for technical updates in the Indices and Commodities webinar.

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