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
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
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
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @FactSet: $SPX is reporting revenue growth of 2.9% for Q4, led by the Health Care (11%), Utilities (9%), and Communication Services (9%)…
  • The AUD has been hit by the risk-appetite pullback occasioned by the spread of Wuhan-strain coronavirus. This week may see domestic focus return, if headlines allow, with key inflation data due. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/UIpwno0pSq https://t.co/kib4d1mA0q
  • RT @anilvohra69: USD inverted (red) is correlated to Excess Reserves (blue) and Reserve Balances (green). 1/2 https://t.co/bbO1pPWY4F
  • RT @FactSet: $SPX is reporting a decline in earnings of -1.9% for Q4, led by the Energy (-42%), Consumer Discretionary (-14%), and Material…
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/6iMyDFqnqe
  • Knowing how to accurately value a #stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/2mjzvYvgSn
  • Previewing the Texas Rangers new home! https://t.co/WITZGSQPlc
  • Thanks for having me on @MartinSEssex https://t.co/fg8uOe16wr
  • The MACD is often used with its default setting when entering trades. However, this versatile indicator can be customized to assist traders in exiting trades too. Learn how to better incorporate the MACD into your trading strategy here: https://t.co/HnY7gzsI2q https://t.co/5F1DSvAXyy
  • What are some factors affecting $GBP as we head into 2020, quarter one? Download your Sterling fundamental forecast with @nickcawley1 here to find out: https://t.co/YfDSYSATK9 https://t.co/ANFLIuDY4J
DAX 30 & CAC 40 Charts: Eyeing Support Test on Further Weakness

DAX 30 & CAC 40 Charts: Eyeing Support Test on Further Weakness

2019-07-30 09:30:00
Paul Robinson, Currency Strategist
Share:

DAX 30/CAC 40 Technical Highlights

  • DAX may soon test December uptrend line
  • CAC back in congestion, at risk or failure

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

DAX may soon test December uptrend line

The DAX was tossed last week following the ECB meeting, selling off aggressively after trying to trade to its best levels of the year. So far, this has led to downside follow-through in the absence of dip-buyers. There is immediate trend-line support from the June low, but a more important trend-line may soon be tested.

The trend-line rising up from the December trough (significant swing-low) and running under the June low (bottom of largest correction this year) is not too far away. At this time it is also in confluence with the July low at 12172.

This isn’t ‘the’ line-in-the-sand, there really isn’t one to speak of, but the December trend-line does offer an interesting spot for ‘would-be’ longs as well as those looking to bet against this year’s trend. A solid turn off support keeps the trend intact, while a break opens up a path for lower prices.

DAX 30 Daily Chart (December t-line may soon come into play)

DAX 30 & CAC 40 Charts: Eyeing Support Test on Further Weakness

DAX Chart by Tradingview

CAC back in congestion, at risk or failure

The CAC consolidated for most of the month before gapping higher and reversing at the 2018 high on the ECB meeting. The reversal out of a congestion pattern has the accumulation sequence at risk of leading to a downside failure.

A solid break below 5533 should have the CAC rolling lower towards the December/June trend-line. Like the DAX, it will be a good test of trend. If the bottom of the consolidation pattern holds, then more chop and a possible move higher could eventually develop.

CAC 40 Daily Chart (falling back inside consolidation pattern)

DAX 30 & CAC 40 Charts: Eyeing Support Test on Further Weakness

CAC 40 Chart by Tradingview

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.