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
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bullish
GBP/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
USD/JPY
Bearish
More View more
Real Time News
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/MX68zib6BX
  • https://t.co/2ITVYWYrf4 https://t.co/PBzWTjcs05
  • Market Update $USD and $JPY slipping from session-high as the risk-sensitive $AUDUSD attempts to claw back lost ground #ASX200 continuing to storm higher while #gold, #crudeoil and #SP500 futures struggle to rebound from session-lows
  • Heads Up:🇹🇭 Balance of Trade (SEP) due at 03:30 GMT (15min) Expected: $3.55B Previous: $4.35B https://www.dailyfx.com/economic-calendar#2020-10-22
  • The Hang Seng Index shrugged off US election risks and erased some earlier losses. Will it attempt to break through a key resistance at 24,750 and open the room for further upsides? https://t.co/7yccetD8JA
  • Crude oil prices extend losses after falling 4% as sentiment soured. The API report showed an unexpected rise in US stockpiles, dragging the energy sector lower. Besides, fading hope for an immediate stimulus package and rising coronavirus cases also weighed demand prospects. https://t.co/X2om6N6jMZ
  • Wall Street Futures Update: Dow Jones (-0.72%) S&P 500 (-0.77%) Nasdaq 100 (-0.75%) [delayed] -BBG
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.57% Oil - US Crude: -0.61% Silver: -1.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/0ibghTmmlc
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/c4XNv81lc9
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.08% 🇬🇧GBP: -0.12% 🇪🇺EUR: -0.14% 🇳🇿NZD: -0.17% 🇨🇦CAD: -0.21% 🇦🇺AUD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XKpWeyDYFg
DAX 30, CAC 40 Technical Outlook Remains Precarious

DAX 30, CAC 40 Technical Outlook Remains Precarious

2020-10-14 12:30:00
Paul Robinson, Strategist
Share:

DAX/CAC Technical Outlook:

  • DAX H&S pattern could come to fruition
  • CAC has big support and resistance to watch
Advertisement

The DAX hasn’t done a whole lot on a net-net basis since we looked at it a week ago. The same broad, potentially bearish, head-and-shoulders (H&S) pattern is still developing. The left shoulder and head are in place, but we still need a right shoulder to develop and subsequent break of the neckline before we can run aggressively with a bearish bias.

The right shoulder could still take on the shape of a rising wedge that provides short-term traders with a look first before the neckline down near 12400 is tested and possibly broken. The area around the neckline has both good price support and not too far below at 12162 lies the 200-day. A break below all thresholds at some point could lead to a strong move.

But before getting ahead of ourselves some work is in order. Should we continue to see strength then the coronavirus kick-off gap at 13579 could finally get fully filled, with the record high at 13788 just around the bend. But it is altogether possible neither scenario bares any fruit as the DAX has generally traded sideways since early June. Eventually, though, we will get another solid move.

Equities Forecast
Equities Forecast
Recommended by Paul Robinson
Check out the Q4Equities Forecast
Get My Guide

DAX 30 Daily Chart (H&S pattern potential)

DAX daily chart

DAX Chart by TradingView

DAX 30 Hourly Chart (Rising wedge formation…)

dax 30 hourly chart

DAX Chart by TradingView

The CAC is much weaker than the DAX, and should we see a broad sell-off unfold it is likely to hit the French index with more force. The 200-day moving average at 5012 and a trend-line from June stand in the way of the CAC moving much higher right here. In the near-term, watch the trend-line off the September low for cues as to whether it wants to trade lower. The real big level of support to watch is around 4691, a level that began back at the end of April. The big level of resistance in the range is 5213. One of these levels needs to be broken before a broader move can develop.

CAC 40 Daily Chart (range-bound until one side breaks)

cac daily chart

CAC 40 hourly chart (watch the trend-line...)

cac hourly chart

CAC 40 Charts by TradingView

Forex 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