Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
DAX and CAC Technical Outlook: Wobbly but Not Bearish

DAX and CAC Technical Outlook: Wobbly but Not Bearish

What's on this page

DAX/CAC Technical Highlights:

  • DAX isn’t particularly strong, but still heading in ‘right’ direction
  • CAC is grinding higher, but wouldn’t take much to set it back
Equities Forecast
Equities Forecast
Recommended by Paul Robinson
Check out the Q4 EQUITIES Forecast
Get My Guide

DAX and CAC Technical Outlook: Wobbly but Not Bearish

The DAX has been heading higher in a grinding fashion lately, with a little bit of a set-back today. Overall, the rise since trading around the 200-day has been fairly persistent, but lacking a ton of conviction. Not long ago we discussed in a video the possibility that this rally could mark the right shoulder of a big picture head-and-shoulders pattern. But without a true turn lower this is only a possible scenario and not what is right in front of us.

What is right in front of us is a market that is still holding steady, even if it doesn’t make us want to run out and buy stocks hand over fist. For now, the game-plan is to continue to respect the current leg higher until there is firm evidence that we shouldn’t.

On the top-side a fresh short-term higher-high will be created on a rise above 15781. This will get the ball rolling towards the record high around the 16k mark. If we see a drop below 15406, the most recent short-term swing-low, then next up will be another test of the 200-day at 151609 (and rising). At that time we could start to entertain the notion of a head-and-shoulders.


DAX Daily Chart

dax daily chart

DAX Chart by TradingView

The CAC has been rising a bit more persistently as it climbs back towards the August high that is very near the record high of 6944, created in 2000. At this time that looks like a real possibility we see a fresh high created, but like with the DAX confidence isn’t super high.

High enough, though, that we should continue respecting the rally. A hard breakdown below 6636 is needed to really start to bring in the possibility of a reversal back towards the 200-day moving average.

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.