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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Join analyst @DavidJSong at 5:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/2B8CdSgkuq
  • The Aussie sell-off halted at key lateral support this week and puts the focus on a break of this key range. Here are the levels that matter on the AUD/USD weekly chart. Get your $AUDUSD technical analysis from @MBForex here: https://t.co/rU4u1tMlmz https://t.co/QbyxUrDq1a
  • The $JPY market faces a clear disconnect between domestic economic data and monetary policy. What if that were to change? Get your market update from @DavidCottleFX here:https://t.co/4Gr8tLaHvj https://t.co/0eXMv5CTnd
  • #Forex Forecast via @DailyFX: US Dollar Technical Outlook on $DXY, $AUDUSD, $USDCAD, $USDJPY & $EURUSD Full Analysis ⬇️ https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/17/usd-price-us-dollar-chart-forecast-dxy-audusd-usdcad-usdjpy-eurusd.html
  • Further escalation in Hong Kong will likely bode poorly for risk appetite https://t.co/0NjUd3ahBu
  • How should you trade around event risks and what steps can you take to improve your trading psychology? Find out from @JoelKruger, a trading consultant and mentor. Only on Global Markets Decoded. Missed the episode? Read up here:https://t.co/JWIGJk4vKa https://t.co/WB39x4GP99
  • Poll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/Ft0ExAmMpq
  • #Dow Jones hits record high, however, central bank liquidity prompts volatility implosion. #FTSE 100 among underperformers with focus remaining on politics. Get your #equities market update from @JMcQueenFX here: https://t.co/EOFleGSeBp https://t.co/ecAyfSUeAM
  • RT @C_Barraud: 🇪🇺 #ECB’s Muller Says More Assets Could Join Stimulus List in Slump - Bloomberg https://t.co/roGEgu0VTQ
  • With increasing volatility in weather patterns, how might storms, hurricanes and floods rattle the supply chain for petroleum-based products and impact crude oil prices? Find out from @JStanleyFX here:https://t.co/O4dgBl47fq https://t.co/OQYqZAYt9S
DAX 30 & CAC 40 Charts – Turn from Resistance Has Channel Support in Play

DAX 30 & CAC 40 Charts – Turn from Resistance Has Channel Support in Play

2019-03-11 08:15:00
Paul Robinson, Currency Strategist
Share:

DAX 30/CAC 40 Technical Highlights

  • DAX edging lower from neckline resistance, t-line support nearing
  • Bottom-side of steep channel in the CAC in play to start the week

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

DAX edging lower from neckline resistance, t-line support nearing

Recently, the DAX traded up to the neckline of the long-term head-and-shoulders pattern dating back to last year. The smallish turn down last week wasn’t a powerful rejection but could nevertheless turn out to be an important high.

To confirm a larger turn lower we can use the channel rising off the December low as a guide. The underside parallel and previously broken June 2018 trend-line intersect right around the same area. A hold will keep a bullish tilt intact, but still have big resistance ahead in focus.

A break of the trend-line, however, will be reason to look for weakness to set in and possibly confirm the neckline retest. For the DAX to roll over materially it will likely be required that the U.S. weaken in a meaningful way, or at the very least slow its roll towards higher prices while German stocks go back to exhibiting strong relative weakness to their U.S. counterparts much in the manner they did last year.

DAX Daily Chart (Lower from neckline, trend support up next)

DAX daily chart, lower from neckline, trend support up next

Bottom-side of steep channel in the CAC in play to start the week

The CAC has been trading in a very tight upward channel since bottoming in December, and on Friday it closed at the bottom-side parallel. This will make early-week trade important. A break outside of the channel won’t necessarily be a major negative but will undermine the clean trending pattern. No major support to speak of at the moment (200-day is at 5185, may not be significant, though), while resistance comes in at last week’s high at 5315 and then the trend-line off the May high.

Continue to watch the relative performance between the DAX and CAC, as the latter continues to be the bright spot. For those trading these two major European indices, looking to the stronger index for longs and weaker for shorts when set-ups present themselves can help in staying on the right side of the path of least resistance.

CAC Daily Chart (Channel support getting tested)

CAC daily chart, channel support getting tested

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.