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.

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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • 🇨🇭 Inflation Rate YoY (SEP) Actual: -0.8% Expected: -0.8% Previous: -0.9% https://www.dailyfx.com/economic-calendar#2020-10-01
  • 🇨🇭 Retail Sales YoY (AUG) Actual: 2.5% Previous: 4.1% https://www.dailyfx.com/economic-calendar#2020-10-01
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/CpvJ1So9ny
  • Heads Up:🇨🇭 Inflation Rate YoY (SEP) due at 06:30 GMT (15min) Expected: -0.8% Previous: -0.9% https://www.dailyfx.com/economic-calendar#2020-10-01
  • Heads Up:🇨🇭 Retail Sales YoY (AUG) due at 06:30 GMT (15min) Previous: 4.1% https://www.dailyfx.com/economic-calendar#2020-10-01
  • 🇷🇺 Markit Manufacturing PMI (SEP) Actual: 48.9 Previous: 51.1 https://www.dailyfx.com/economic-calendar#2020-10-01
  • Heads Up:🇮🇳 RBI Interest Rate Decision due at 06:15 GMT (15min) Expected: 4% Previous: 4% https://www.dailyfx.com/economic-calendar#2020-10-01
  • Heads Up:🇷🇺 Markit Manufacturing PMI (SEP) due at 06:00 GMT (15min) Previous: 51.1 https://www.dailyfx.com/economic-calendar#2020-10-01
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/mPV8BzlTV6
  • 🇮🇳 Markit Manufacturing PMI (SEP) Actual: 56.8 Expected: 52.8 Previous: 52 https://www.dailyfx.com/economic-calendar#2020-10-01
DAX 30 Technical Outlook: Overbought but Trading Above Long-term Hurdle

DAX 30 Technical Outlook: Overbought but Trading Above Long-term Hurdle

2019-04-09 08:02:00
Paul Robinson, Strategist
Share:

DAX 30 Technical Highlights

  • DAX closed last week above long-term levels
  • Extended near-term, due for a pullback

Fresh quarterly forecasts are out, to see where our team of analysts see the Euro, DAX, and other markets are headed in the coming weeks, check out the DailyFX Q2 Trading Forecasts.

DAX closed last week above long-term levels

Last week, the DAX closed above several long-term thresholds. This doesn’t necessarily put it into the clear to trade materially higher, but it certainly dents the bearish case for now. To recap, the long-term levels being tracked, are the neckline of the head-and-shoulders pattern dating back to 2017, the 2011 trend-line, 200-day MA, and March low from last year.

Despite closing above the levels on Wednesday, it looked as though a shorter-term ‘RST’ (Reverse Symmetrical Triangle) pattern may end up pushing the DAX lower by Friday to close below the aforementioned levels, leaving it with a weekly candlestick reversal. However, that was clearly not the case. This may open the way up for a broader rally to continue, but that may be put on pause until we see some retracement of the recent leg higher.

The market is rolling over just a bit from the upper parallel of a channel dating back to the December low. Stay below 12029 and lower prices are anticipated down towards 11800 and the gap-fill from April 3 at 11754, below there the 200-day under 11700, then the lower parallel closer to 11600.

Another little push higher from here above last week’s high will bring into play the trend-line off the Jan 2018 record high level. The thinking is that the market is either already undergoing a pullback or will very soon with both overbought conditions and resistance levels in the area.

Risk/reward is generally skewed negatively for longs at this point and growing more favorable for traders looking to play for a retracement. Following a pullback longs may become attractive if price action is constructive during the corrective process.

DAX Daily Chart (pullback looking likely soon)

DAX daily chart, pullback looking likely soon

DAX Weekly Chart (Closed above resistance)

DAX weekly chart, closed above resistance

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