Tomasz Wisniewski
Axiory Global Ltd.
Octoberfest finished almost two weeks ago but German traders are still in a perfect mood. Today, DAX managed to set new yearly high and this can be just the beginning. This week’s candle (yellow) is breaking a very important resistance, which for technical traders can be considered as a strong buy signal.
The resistance, which I am talking about is the upper line of the symmetric triangle pattern (blue). This kind of breakouts are usually very strong and should not be ignored by traders. Especially, when the upper line of the triangle, is in the same time the neckline of the inverse head and shoulders pattern (orange). Yes, that is right. The massive correction that lasted for almost two years, is a well known iH&S formation.
If after seeing this, you are eager to open a long position, we are obligated to remind you that weekly candle is still in the process of creation. So far, so good but it is Thursday and a lot can happen till Friday evening. Once the candle will be created and the weekly close will be near yearly highs – the buy signal will emerge. In my opinion, chances for that are significant.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.