Skip to content
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. See our updated Privacy Policy here.

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
Subscribe
Please try again
Gold
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
More View more
DAX Chart Set Up for Breakout, CAC Has Eyes for 2000 Record Highs

DAX Chart Set Up for Breakout, CAC Has Eyes for 2000 Record Highs

Paul Robinson, Strategist

DAX/CAC Technical Highlights:

  • DAX basing pattern since middle of June
  • CAC continues to propel towards record highs
Equities Forecast
Equities Forecast
Recommended by Paul Robinson
Check out the Q3 EQUITIES Forecast
Get My Guide

DAX Chart Set Up to Breakout, CAC Maintaining Persistent Bid

The DAX appears poised to trade to a new record high soon, with it pressing up against the highs created in June and July. The sideways price action the past couple of months bodes well in the context of a bull market.

A breakout above 15810 will have the DAX notching a new record high, but it is unclear with no signposts available as to how high the index could rise without finding sellers. It would seem reasonable to think the next leg up could be ~3-5%, but we will see.

If we get a breakout, watching how price action unfolds will be the key. Take the CAC, for example, it has yet to show signs of weakening. If the DAX can maintain a steady to aggressive rise then it wouldn’t be until we saw some type of volatility hit that we would then be looking for a pullback.

Should the DAX fail to get a further bid here into new highs and instead a pullback starts to develop, watch the March 2020 trend-line not far below. This is a significant trend threshold that was tested last month and held well. Stay above that line and the outlook is neutral to bullish.

Advertisement

DAX Daily Chart

dax daily chart

DAX Chart by TradingView

The CAC has been extremely persistent since bottoming in July, notching only two down days in thirteen days and counting. Impressive indeed. This leaves the index only about 150 points from reaching the 2000 peak.

As the index continues to approach a major milestone, keep an eye out for bearish price action that might suggest the market is about to go into retreat mode. There is an upper parallel tied off with the record high, but not nearly as influential as the high itself.

CAC Daily Chart

cac daily chart

CAC 40 Chart by TradingView

Resources for Forex Traders

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