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
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @PaulRobinsonFX here: https://t.co/WjU4oYpmf7 https://t.co/QJp3jpS3Ui
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/ukvZfr6BXf
  • BoE’s Tenreyro says evidence on negative rates are “encouraging” Meanwhile, STOXX Europe Banks Index resides at all time lows https://t.co/bBYcLrtXhj
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/yy0FTn9Pnp
  • Anti-fiat #gold prices suffered the worst week since August as the US Dollar gained ground. Will losses extend? All eyes turn to fiscal stimulus hopes and non-farm payrolls data. Get your #metals update from @ddubrovskyFX here: https://t.co/054CJvOWw4 https://t.co/BzODShHmqH
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/me8wMRpJjE
  • What is seasonal change in volatility. Are we going through one right now? Find out: https://t.co/G0qfpOmMl2 https://t.co/HXCQzUQgxA
  • The US Dollar will be bracing for a cascade of political risks including the first presidential debate, ongoing stimulus talks, the Supreme Court vacancy against the backdrop of key employment data. Get your #currencies update from @ZabelinDimitri here: https://t.co/quU4MmUjxA https://t.co/jF6ubwRz1P
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/PfIVibmqn1
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/lKvEMf4QRe
DAX 30 & CAC 40 Technical View: Short-term Positive, Broadly Negative

DAX 30 & CAC 40 Technical View: Short-term Positive, Broadly Negative

2019-06-04 08:00:00
Paul Robinson, Strategist
Share:

DAX 30/CAC 40 Technical Highlights

  • DAX reversal yesterday suggests (only) a bounce
  • CAC 40 lifting off 200-day, but H&S pattern in effect

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

DAX reversal yesterday suggests (only) a bounce

The DAX 30 gapped down to start the week but posted a relatively powerful reversal from just above the 200-day to end yesterday. This morning brought with it another, smaller gap which has currently closed. The price action is a positive in the near-term.

There will likely be some opposition in the 11850-area, where several lows resulted after the April 3 gap higher. This resistance extends up to a full gap-fill on Friday up to 11902. This may be all the higher the market can rally before rolling back over.

If a rejection doesn’t develop in the 11850/900-zone, then watch the May 28 gap at 12027 and declining upper parallel off the May 3 high as the next levels of resistance. Over the past month the trend structure has turned negative with a lower-low and lower-high sequence having developed.

Following a break of the trend-line from the December low this could mean we are seeing the beginning of a trend lower in the weeks ahead.

DAX Daily Chart (Resistance ahead to pay attention to)

DAX 30 & CAC 40 Technical View: Short-term Positive, Broadly Negative

CAC 40 lifting off 200-day, but H&S pattern in effect

The CAC 40 gapped just below the 200-day MA yesterday before posting a solid rebound to erase most of the day’s losses. This has the near-term picture constructive, but with the head-and-shoulders (H&S) pattern just recently triggered, downside momentum may have only begun.

Watch how the market reacts on a retest of the neckline around 5275, where also lies the trend-line from five weeks ago. The CAC could make a run above the aforementioned resistance and close the May 28 gap at 5312 before turning lower. At this time, it will require a sustained push well above the neckline to negate the H&S pattern’s negative bias.

CAC Daily Chart (between 200-day/resistance)

DAX 30 & CAC 40 Technical View: Short-term Positive, Broadly Negative

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