Good morning traders!
The relaxation in the Greek debt crisis has brought a positive start to the week. The Dax gained just under 70 points closing at its highest level since late May, with another positive/bullish signal.
With the Greek cloud lifting (even if it is only temporary) the path is clearing for economic data to have the more significant influence once again and we are currently in a largely positive quarter for earnings right now. Some analysts are pointing to the hope of continued good business in the US and of the crude oil and the euro prices falling again.
I personally think Gold was the major talking point as the “perfect storm” gave us a incredible display of price, taking out key support and plummeting through the $1100 barrier like a lead balloon. Many articles are discussing the reasons for the sell-off but most agree that there is now a reduced need for defensive havens with the imminent (Sept) US dollar lift-off and there is also a reduced need for inflation hedges. Great for foreign exchange and commodities, but what about Dax? Well I think the US are massive trading partners with Germany, so when they do well, Dax tends to do well too.
Regarding my personal trades, I still haven’t got my position on yet, I would like to see a settling before going long. Glancing at the RSI on the 4-hour chart, we are still overbought right now, just holding above the 8 EMA but beginning to slow. If we get a pullback, I want to watch a move towards the previous 11632 resistance and ideally I want to see a move to the .382 fib zone of the recent swing (8/7 – now) which would be closer to 11360.
Regarding my automatic trader (details on the right), after a period of turbulence and a few mistakes with too many markets trading loose settings which I failed to manage properly, I have found the main problems, ironed them out and am now finishing up the final testing.
Frequently Asked Questions
Who do you use to place Dax trades?
Just to answer all those queries, I use a FXCM Spreadbetting/CFD account. I have used them for just over a year and I recommend them to anyone who is serious about trading. They have good spreads, fast execution, many markets, an excellent charting package and lots of resources to assist your trading. I will provide some videos, tutorials and other information to answer the question in more detail, but this is a start. Try the demo account and see what you think, I transferred from IG to FXCM almost straight away (but that’s just my preference).
Dax Support & Resistance
|200 Day SMA||10924|
The highest close since end of May and perhaps we can now start to build again from here, although we may be a little overcooked and I expect a base to be built a little lower, we have recovered strongly.
We still are within touching distance of the major fib from the April-July swing and i would still expect to see some kind of bounce before we build higher. I have not opened a position yet because of this, so I hope I don’t miss the chance to get in.
Three setups are possible on the 30-minute chart.
Nice breakout from last week here:
The FXI indicator is still showing a high probability of a direction change on the daily chart (top left) and the 4-hour RSI (bottom right) shows us overbought as well.