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
EUR/USD
Mixed
Oil - US Crude
Bullish
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Breaking news

Australia added 114.7k jobs in July, beating 30.0k estimate. Unemployment rate fell to 7.5%, outperforming the 7.8% estimate

Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:https://t.co/sR7HqpK8BI https://t.co/PSyPSFwSQq
  • - #Crudeoil prices could get a tailwind from newly growing US-#Iran political risks - Washington is seeking to extend an arms embargo beyond its October deadline - #Geopolitical tensions are not unfamiliar to oil traders, but is this time different? https://www.dailyfx.com/forex/fundamental/article/special_report/2020/08/13/Crude-Oil-Prices-Brace-for-Impact-with-US-Iran-Tensions-Brewing.html
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/RD5jfhST15
  • If you missed today's live coverage of the Australian jobs reports where I discussed recent price action and the trajectory of $AUDUSD, $AUDJPY and $AUDNZD, check out the recording on YouTube here - https://t.co/DFtslv9p9J
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.36% Gold: 1.08% Oil - US Crude: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/D73pACW7Wo
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.20% 🇬🇧GBP: 0.19% 🇨🇭CHF: 0.14% 🇦🇺AUD: 0.07% 🇨🇦CAD: 0.04% 🇳🇿NZD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/iWfve22mC7
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.74%, while traders in US 500 are at opposite extremes with 78.31%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/pr60jYN4lU
  • Are we witnessing a positive month for the FTSE as bulls take control? Find out here: https://t.co/j89IW0WMY7 https://t.co/JECJAfuFJW
  • #AUDUSD edged slightly higher after better-than-expected jobs report https://t.co/1sG8q6hGcc
  • 🇦🇺 Full Time Employment Chg (JUL) Actual: 43.5K Previous: -38.1K https://www.dailyfx.com/economic-calendar#2020-08-13
DAX 30 & CAC 40 Charts: Resistance, Relative Weakness Remain Headwinds

DAX 30 & CAC 40 Charts: Resistance, Relative Weakness Remain Headwinds

2019-02-20 12:00:00
Paul Robinson, Strategist
Share:

DAX 30/CAC 40 Technical Highlights

  • DAX lagging other indices, big resistance to contend with
  • CAC has resistance and bullish channel in focus

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

DAX lagging other indices, big resistance to contend with

The world’s largest and strongest stock market continues to put in a strong showing, but that could soon come to an end, as the S&P 500 is on the verge of trading up against strong resistance surrounding 2800. The DAX is not only severely lagging the U.S. but is also lagging in its own region (CAC).

This relative weakness in of itself is a bad sign for the DAX, add in the fact that it also has strong resistance which it can’t hurdle, and you have a situation where it won’t take much to knock the German market low.

The 2011 trend-line has been a problem ever since it was broken. This morning the Feb 5 high was breached, however; at this time the DAX is failing to maintain above. Even if it closes strong today, not far above lies a trend-line from the summer and the neckline of the H&S pattern dating back to 2017.

Those levels are above the 2011 trend-line, but not far enough to make reaching them a convincing recapture of the broken long-term trend threshold. The region from here up to just over 11500 is important.

Tactically, it would be ideal to see the S&P push into resistance and have the DAX continue to remain sluggish at resistance. If relative weakness is to hold true, then a global turn lower in stocks should see the DAX lower in aggressive fashion.

DAX Weekly Chart (2011 t-line, H&S neckline)

DAX weekly chart, 2011 t-line, H&S neckline

DAX Daily Chart (A lot of resistance in the area)

DAX daily chart, a lot of resistance in the area

CAC has resistance and bullish channel in focus

The French benchmark is pressing up into an area of resistance dating back to the middle of last year. Running lower into this zone is the 200-day MA, making the 5200/50-region an important one. The upward channel structure off the December low will need to be broken for selling to pick up, but given its sharp angle and heavy DAX this seems likely to happen on a round of weakness.

CAC Daily Chart (Resistance, bullish channel)

CAC daily chart, resistance, bullish channel

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

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.