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.

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, CAC 40 Breakouts; Gold Price Vulnerable

DAX, CAC 40 Breakouts; Gold Price Vulnerable

Enjoy the video? Join Paul Tuesday-Friday each week – for details, see the Webinar Calendar.

The price of gold turned lower the past couple of sessions from a thicket of resistance carved out during 2016 along the widely-watched 2011 trend-line at that time. There is also a trend-line coming across from 2013. But what is interesting, and this was discussed in a piece written yesterday, is the positioning profile in the futures market (via the COT report) indicates a situation where buyers have gotten ahead of themselves. While this might not be an ominous sign, history does suggest that the top-side could be capped for a while. Looking at silver, if gold isn’t likely to keep on chugging along, then neither is it.

Crude oil is a volatile day-to-day mess, but more broadly the view is still that a rounding top is being put in place and that at some point we will see the 30s visited again. But from a tactical standpoint, all short-term maneuvers need to be made with in mind that price reversals are happening frequently and booking solid trades is a prudent approach until a cleaner trend emerges.

The importance of trading psychology can’t be understated. Check out this beginner’s guide – Building Confidence in Trading.

We focused on the DAX & CAC 40 today, given their substantial breakouts above key levels/lines yesterday. There is room to run for these indices, especially if risk appetite continues to remain firm. A higher euro is clearly losing its impact and should it experience a sell-off it will likely further help the bullish case. The FTSE is stuck in a range and so it remains off the radar for now. The S&P 500 closed to a new record high yesterday, and we’re now looking to 2500 and then up to 2520 or so. The Nasdaq 100 looks poised to continue higher out of a recently broken bull-flag.

For full technical considerations, please see the video above…

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.