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DAX 30/CAC 40 Technical Highlights

  • DAX back around 2011 trend-line, recent swing-high
  • CAC stronger, trading into levels from late last year

To see our intermediate fundamental and technical outlook for the DAX & Euro, check out the DailyFX Q1 Forecasts.

DAX back around 2011 trend-line, recent swing-high

This week’s push higher has the 2011 trend-line back in focus, a line that has clearly been influential since October. The breakdown in December furthered along the broad head-and-shoulders top, but with the rally off the low to end the year and U.S. market strength we’ve seen the index put up a solid series of retests recently.

In the near-term, current levels up to 11372 could prove problematic for the DAX, but with overall risk appetite still intact in Europe (i.e. – CAC) and quite strong yet in the U.S., we might not see price roll over just yet.

The trading bias right now is fairly neutral given the opposing forces. For those seeking very short-term trades (intra-day) the market is offering a little back-and-forth volatility, but for swing-trades beyond a couple of days conviction is lacking.

DAX Daily Chart (Trading around 2011 t-line again)

DAX daily chart, trading around 2011 t-line again

CAC stronger, trading into levels from late last year

The French index has been quite a bit stronger than its German counterpart, but it could slow down with sizable resistance from here until around 5250 standing in the way. Several swing highs and lows appear for the next 150 points. Trend structure will remain firmly bullish as long as the channel off the December low remains intact, so even if we see a turn down from resistance it might be a dip bought rather than furthered along into a full-blown sell-off.

CAC Daily Chart (trading into resistance)

CAC daily chart,

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