Good morning traders!
Interesting day yesterday on the market, lots of opportunity for both bulls and bears intra-day.
Data from the US has once again strengthened the case for a fed rate hike with initial jobless claims printing some of the low rates for years and this could well be weighing heavily on the stock markets. Perhaps people are thinking that higher interest rates means less consumer spending meaning lower future earning potential and lower stock markets.
A stronger dollar certainly seems to be on the way making the EURUSD shorters very happy, although it may take a little while for the current trend to reverse, which could mean good news for the Dax.
I am personally looking to target the 50% correction of the recent swing and buy from there, but will do so with caution. There are a number of interesting buy zones and I have highlight them in this short video. Take a look for yourself.[twitter-follow username=”DaxTrader54″ scheme=”light”] [warning]Remember to come and like me on Facebook here[/warning]
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).
I will include this section in all reports this week
Dax Support & Resistance
|200 Day SMA||10939|
A technical pullback is what many traders seem to be expecting now:
The 34,3 Bollinger band on the 4-hour chart provides an interesting area of support at 11300
The fib zone from the July swing is interesting to watch
A number of different potential opportunities from the 5 minute chart, that I missed yesterday, including a nearly pin bar and bounce from the pivots which would’ve been good buying spots for the short-term trader.