Never miss a story from Paul Robinson

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Paul Robinson

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

DAX 30/CAC 40 Technical Highlights

  • DAX consolidation suggests higher prices soon
  • CAC swing levels from May could be challenged

For fundamental and technical forecasts, trade ideas, and educational guides, check out the DailyFX Trading Guides page.

DAX 30 consolidation suggests higher prices soon

The DAX 30 tagged the underside of the December trend-line last week, posted a smallish reversal candle, and has since then moved generally sideways. After the run off the monthly low this is considered a constructive situation that should lead to an attempt to trade higher soon.

On Friday, the gap from June 11 was almost entirely filled, and on that the low from last week at 12050 may be as far as the current consolidation/retracement digs into the prior advance. Looking at the hourly chart a bull-flag is developing just above the trend-line (upper parallel) running down off the May 3 high.

Overall the outlook in the near-term is shaping up well, which appears to give ‘would-be’ longs the upper hand. It will take an invasive dive lower to shake this bias. A break of the upper parallel of the developing bull-flag and move above 12227 will once again have the underside of the December trend-line back in focus, but if the recent surge is any indication it may not act as a capper to the next move higher.

The next level of significant resistance arrives at 12310/19, where the DAX was stopped twice from filling the May 6 break-away gap. A fill of that gap up to 12412 may not be too far away.

DAX 30 Daily Chart (levels to watch)

DAX 30 & CAC 40 Charts Stabilizing, Looking Higher

DAX 30 Hourly Chart (bull-flag forming above t-line)

DAX 30 & CAC 40 Charts Stabilizing, Looking Higher

CAC swing levels from May could be challenged

The technical posturing in the CAC 40 isn’t as encouraging as that for the DAX, but nevertheless still constructive. Maintaining above the low of Friday’s smallish reversal candle at 5342 will help keep the short-term picture tilted higher, with the first hurdle to cross standing at 5431, followed by 5450, 5489, then the gap-fill from May 6 up to 5548.

CAC Daily Chart (levels to watch)

DAX 30 & CAC 40 Charts Stabilizing, Looking Higher

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