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
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
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
Oil - US Crude
More View more
Real Time News
  • $AUDUSD: The Australian Dollar sell-off has responded to long-term downtrend support at 6768/70. Get your AUD/USD technical analysis from @MBForex here: https://t.co/1AzdstqgZI https://t.co/XUqRqTC6B4
  • German Bund Yields Update: 2-Year: -0.648% 3-Year: -0.679% 5-Year: -0.590% 7-Year: -0.522% 10-Year: -0.339% 30-Year: 0.175%
  • EU Council President-elect Michel says the EU ready for a trade deal with the UK to be made $EUR
  • Even the cheerleaders are starting to cast doubt on the game... https://t.co/TdWOuON6p5
  • -If funding risks manifest during an adverse scenario it could lead to ‘fire sales’ causing severe losses and perhaps even insolvency
  • - Funding risks include investors wanting to withdraw funds quickly in adverse situations. While financial institutions have most liquidity in illiquid assets including those that have a long maturity or hard to sell
  • -In turn, credit access would be severely impacted for households and businesses
  • -The financial sector has excessive leverage with an increased risk to absorb shocks such as modest losses from adverse shocks -Should the financial sector be hit by those shocks, a cut back in spending would be necessary along with asset sales, and perhaps even shutting down
  • -Spending may need to be cut back drastically should those events occur which could lead to financial institutes and investors incurring losses
  • -Excess borrowing by businesses and households leaves an increased vulnerability of distress should incomes decline or owned assets dropping in value
DAX 30 & CAC 40 Charts – Trading Down into Important Channel Support

DAX 30 & CAC 40 Charts – Trading Down into Important Channel Support

2019-03-22 09:00:00
Paul Robinson, Currency Strategist

DAX 30/CAC 40 Technical Highlights

  • DAX testing important channel support from December
  • CAC maintaining incredibly tight channel for now

To find forecasts and educational content for traders of all experience levels, check out the DailyFX Trading Guides page.

DAX testing important channel support from December

It’s getting to be a thick spot for the DAX right here, with a lot going on big-picture and in the short to intermediate-term. Starting with the view from above, on the weekly chart the German benchmark is trading around the neckline of a broad head-and-shoulders pattern, the low from a year-ago, the 200-day, and underside of the trend-line from 2011.

Tuesday saw the market higher and a close at the 200-day, which has since brought with it some fairly aggressive short-term weakness. Yesterday, the market traded down to the lower parallel of the channel off the December low and posted a smallish reversal candle. It wasn’t anything ultra-bullish but suggests for now the market wants to stay in the channel.

The thinking is, is that if we are to see the DAX make a long-term turn lower that an edge in trading from the short-side won’t materialize until at the very least the bullish structure from December is broken. As long as the channel is maintained then a neutral tone at worst will be maintained. It’s tough being a long though with so much resistance in the vicinity.

All-in-all, for now, going to wait and see how this battle of support and resistance shakes out before running with a trading bias.

DAX Daily Chart (Testing December channel)

DAX daily chart, testing decemer channel

DAX Weekly Chart (Big area right here)

DAX weekly chart, big area right here

CAC maintaining incredibly tight channel for now

The CAC backed off a little from around the trend-line extending over from May, but to keep it supported is the channel off the December low. It’s one of the more impressive technical structures out there right now, with the ride higher having been extremely smooth. Stay within and the story remains the same, but fall outside then we may see some weakness set in. Generally speaking, market isn’t very attractive from either side of the tape at the moment.

CAC Daily Chart (Tight-roping channel)

CAC daily chart, tight-roping 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.


News & Analysis at your fingertips.