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
Bearish
Gold
Mixed
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
More View more
Real Time News
  • 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/LpRs8gqhaO
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/lFoPX5pbyH
  • RT @IGSquawk: Merkel proposing one month lockdown. #DAX 11882 -1.50% https://t.co/7HMwsSX7M1
  • Wall Street Futures Update: Dow Jones (-1.68%) S&P 500 (-1.39%) Nasdaq 100 (-1.04%) [delayed] -BBG
  • A forex trader is strategic, disciplined and always switched on to the markets. Learn how to build an FX mindset here: https://t.co/ujEpfmO6C4 https://t.co/7CMyy8GhkR
  • 🇿🇦 Inflation Rate YoY (SEP) Actual: 3% Expected: 3.1% Previous: 3.1% https://www.dailyfx.com/economic-calendar#2020-10-28
  • Big risk-off shift early in European trade Haven-associated $USD and $JPY storming higher as the risk-sensitive $AUDUSD slips lower $EURUSD plunging lower as several European governments tighten restrictions amid a surge of #Covid19 infections https://t.co/Dc5JWfajUf
  • 🇿🇦 Inflation Rate YoY (SEP) Actual: 3.0% Expected: 3.1% Previous: 3.1% https://www.dailyfx.com/economic-calendar#2020-10-28
  • 🇫🇷 Consumer Confidence (OCT) Actual: 94 Expected: 93 Previous: 95 https://www.dailyfx.com/economic-calendar#2020-10-28
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.54%, while traders in NZD/USD are at opposite extremes with 71.21%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cDHk860zOc
DAX 30 & CAC 40 Technical Outlook: Challenging Year Highs

DAX 30 & CAC 40 Technical Outlook: Challenging Year Highs

2019-10-16 09:30:00
Paul Robinson, Strategist
Share:

DAX 30/CAC 40 Technical Highlights

  • DAX extended into the year-high from July
  • CAC hit a new multi-year high, but at resistance

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

DAX extended into the year-high from July

The recent surge in the DAX has the index above one key threshold of resistance by way of the trend-line off the January 2018 high. A line that gave the market trouble on three occasions in recent weeks. Yesterday’s move was enough to edge the market to its best levels of the year, but still can consider the July a spot to watch for potential weakness.

The rally since October 4 up to yesterday was one of the more impressive short-term surges we’ve seen in a long time. The DAX may be short-term overbought and in need of a digestion phase before running higher, but the strength of momentum suggests that higher prices could indeed be in store soon.

Looking at the peaks from September 12 to October 1 (all arriving at the Jan ’18 t-line), there should be some good support around the 12500/470-area. Just around that area, given its low angle, lies the 2018 trend-line.

On further strength, the underside of the December trend-line will be a targeted area of resistance, then followed by, and perhaps in confluence with the trend-line, a swing-high from July 2018 at 12886.

DAX 30 Daily Chart (looking to further itself along)

DAX 30 & CAC 40 Technical Outlook: Challenging Year Highs

DAX Chart by Tradingview

CAC hit a new multi-year high, but at resistance

The CAC hit new highs for the year yesterday, best levels since before the GFC. But it’s been here before only to fail. There is a trend-line running over across tops since April that are helping keep a lid on price. A cross of this resistance should have the French index rolling higher, but until it does it must be treated as resistance.

A consolidation, then breakout could provide a platform for fresh longs. In the event of higher prices, there isn’t anything until a swing high from late-2007 located at 5865. On a pullback, support comes in via a minor trend-line off the August low.

CAC 40 Daily Chart (trading at trend-line resistance)

DAX 30 & CAC 40 Technical Outlook: Challenging Year Highs

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