Matt Simpson, CFTe, MSTA
CityIndex
Whilst DAX takes a quiet nap at the all-time highs Euro bears reached a record net-short exposure last week
The trend is clearly bullish across most timframes as price hovers above the 20 day MA. Thursday produced a Bullish Pinbar above 11,600 which may well have marked the end of the current correction. Whilst we remain below MR2 there is potential for a pullback within Thursday's range to allow a buy-limit order, with a stop below 11,600 to assume bullish continuation.
Whilst it remains within a suspected correction it should also be noted that the range is relatively small and simple. This favours a bullish resumption sooner than later but we could use a break below 11,600 as signal for a deeper and more complex correction, with likely support around 11,200.
On an observational note, whilst DAX takes a quiet nap at the all-time highs Euro bears reached a record net-short exposure last week. A weaker Euro tends to have a positive impact on European stocks so we can assess the EURUSD downtrend to help provide confidence of further upside on DAX or other European Indices.
Eurozone Flash CPI data is out this weak (inflation) which leaves an upside surprise for DAX if it comes in on or below the -0.3% consensus.
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.