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
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
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
Bitcoin
Mixed
More View more
Real Time News
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/ywv7RVP9qY
DAX 30 & CAC 40 Technical Outlook: Just a Bounce or More?

DAX 30 & CAC 40 Technical Outlook: Just a Bounce or More?

2019-08-21 09:30:00
Paul Robinson, Currency Strategist
Share:

DAX 30/CAC 40 Technical Highlights

  • DAX bouncing, but that may be all it is
  • CAC working towards broken December t-line

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

DAX bouncing, but that may be all it is

The DAX 30 dropped below the 200-day MA recently, but it was only an affair that lasted a couple of days. The gap on Monday has so far sustained, bringing into play the 11865-resistance level from earlier this month. Beyond there the next level to watch is the gap from the beginning of the month from 12034 up to 12252.

Broadly speaking, price action since May could be taking the shape of a head-and-shoulders pattern, with the current price action working towards a possible right shoulder. This would mean that while the current rally could extend it won’t likely extend for much longer before fading and turn back lower.

From a tactical standpoint, resistance just ahead could prove challenging and a roadblock for short-term-minded longs, potentially rewarding spot for would-be shorts to take a crack. A break above should extend the bounce for now towards the gap-fill.

DAX 30 Daily Chart (just a bounce for now)

DAX 30 & CAC 40 Technical Outlook: Just a Bounce or More?

DAX Chart by Tradingview

CAC working towards broken December t-line

The CAC continues to demonstrate a little more strength than its German counterpart. Price is currently above the recent range and working towards the underside of the December trend-line. From there either the gap-fill up 5557 could be challenged or price turns down prior to it, price action pending.

Perhaps both are met with the sharp angle of the December trend-line running into the gap at some point down the road. Broadly speaking, same as the DAX, a head-and-shoulders pattern is coming into view but still has some work to do before it comes to fruition.

CAC 40 Daily Chart (watch 200-day, recent low)

DAX 30 & CAC 40 Technical Outlook: Just a Bounce or More?

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.