The optimism returns to stocks markets backed by China, and the United States that agreed to meet in early October. This Thursday, the two largest world economies accepted to hold a high-level meeting in Beijing.

The meeting was accorded between the Chinese Vice Premier, Liu He, the U.S. Trade Representative Robert Lighthizer, and the U.S. Treasury Secretary Steven Mnuchin.

This Thursday, European stocks market are soaring by the second consecutive day. Euro Stoxx 50 climbs 0.25% reaching 3,480 pts, DAX 30 rises by 12,125 pts or 0.68%, CAC 40 gains 1.05% advancing to 5,590 pts.

 

Will DAX make it to the 12,500 pts?

The following daily chart corresponds to the DAX 30 index. The big picture shows a higher lows sequence which calls for more upsides. In the short-term, from the August 15 low, we observe a potential wave 3 in progress. The impulsive movement could reach the area between 12,340 pts and 12,470 pts. The bullish scenario will be invalid if DAX closes below  11,575 pts.

DAX

Technically, the 12,500 pts area shows a congestion zone which will require increased volatility to support the breakout. If the price action drives the German index to test the psychological level at 12,500 pts, we anticipate a retracement near to the 12,200 pts before surpassing the 12,500 pts and visit 2018's highs.

 


 

100% Anonymous Trading on EagleFX - Trade NOW!

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: trade war optimism skews the risk to the upside

The EUR/USD pair has rallied to 1.1062 on Friday, its highest since September 20, as risk-on prevailed heading into the weekend. Reports on progress in trade talks between the US and China.

EUR/USD News

GBP/USD's rally stalls in the open as weekend headlines highlight Brexit deadlock

GBP/USD is a touch softer in the open on Monday, starting off the week in the consolidation of Friday's upside extension to the highest levels since mid-summer. 

GBP/USD News

USD/JPY consolidating bull rally into 108 handle on US/Sino trade deal optimism

USD/JPY starts out the week flat to Friday's close after markets rallied at the end of the week. Bullish geopolitical undertones in the form of a US/Sino 'phase 1' trade deal help lift USD/JPY onto the 108 handle.

USD/JPY News

US China trade deal propels US markets and yields higher and leaves dollar mixed

The US and China reached a limited trade deal on Friday a first step on the path to what both sides said could be a more comprehensive pact later in the year. President Trump said the countries reached a “very substantial phase one deal”.

Read more

Gold sellers cheer US-China trade optimism against all odds

With the US and China near to end the two-year-old trade tussle, Gold bears give little importance to doubts over soft Brexit and tension surrounding Syria while flashing $1,484.70 as a quote during Monday’s Asian session.

Gold News

Forex Majors

Cryptocurrencies

Signatures