Source: Economic Events August 5, 2019 – Admiral Markets’ Forex Calendar
As we begin the trading week, we want to have a look at the DAX30 CFD. After the FED rate decision last Wednesday and the first hours of trading on Thursday, it looked as if the German index could easily stabilise above the psychological relevant level around 12,000 points.
This changed dramatically after US president Trump announced a new round of tariffs late last Thursday. Among them were 10% new tariffs on Chinese goods beginning September, pushing Equities aggressively lower and levelling the path for the DAX30 CFD to close the week below 12,000 points.
And with a thin economic docket today and the rest of the week, the approach seems to clearly be ‘sell the bounce’ as the German index is vulnerable to further losses, especially if the region around 11,900 points cannot be held.
A break below is also going hand in hand with a break back below the EMA(200) on a daily time frame, switching the overall mode to bearish again, and making it likely that bigger market participants start to unwind their long-positions in Equities.
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Below 11,900 points the next target on the downside can be found around the June lows around 11,600 points:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between July 16, 2019, to August 2, 2019). Accessed: August 2, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD daily chart (between April 24, 2018, to August 2, 2019). Accessed: August 2, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of the DAX30 CFD increased by 2.65%, in 2015, it increased by 9.56%, in 2016 it increased by 6.87%, in 2017 it increased by 12.51%, in 2018 it fell by 18.26%, meaning that after five years, it was up by 10.5%.
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