DAX Looking to Close Week in Record Territory, CAC Looking Strong Too
DAX/CAC Technical Highlights:
DAX in record territory as weekend nears
The DAX continues to push on higher as the old record high at 13795 gave-way earlier this week to a fresh record. The past couple of days have brought only modest strength on top of the breakout, but if we see a weekly close at a new high it could usher in some more buying the days/weeks ahead.
It is difficult to say with any real accuracy how high a market could go once in record territory, but the most prudent move here may be to continue to give the upside the benefit of the doubt until there is pervasive price action.
With that said, though, traders will want to be careful not to chase up-move as small corrections can still develop even if the DAX is headed much higher. Buying dips and consolidations may offer good risk/reward set-ups.
DAX Daily Chart (fresh record high breakout)
The CAC isn’t in record territory but it is tracking higher closely with the DAX. The breakout from the recent congestion may finally have the French index up to where it can fill the coronavirus-induced gap-down in February. The gap runs from 5875 up to 6030 where it will be filled.
CAC Daily Chart (corona-gap ahead)
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---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.