Source: Economic Events 21 September 2020 - Admiral Markets' Forex Calendar
DAX traders were hoping for impulses from the FED last week, but were disappointed. As a result, the German index continued trading within a choppy trading range between 13,100 and 13,300 points.
Since the US central bank FED didn't deliver anything really new at its rate decision last week on Wednesday and most market participants were expecting such a stance, the DAX30 went for a stint lower, but didn't break below 13,000 points.
One main reason for the rejection against this level was probably the big expiration ("Triple Witching") last Friday with the 13,000 point mark seeing an elevated open interest in terms of put options.
Price action wise, the failed attempt for a break lower leaves the DAX within a choppy range with hopes rising among traders that we'll get to see a break on the up- or downside sooner rather than later.
In our opinion, the German index still depends strongly on US Equities, especially the Nasdaq100:
- The focus on the Nasdaq100 is on the region around 11,000 points
- Our outlook is that the DAX30 will continue to be positive
- There is potential for the DAX30 to test current September highs around 13,450 points, with a stop-over around 13,300/350 points
A break lower in the Nasdaq100 makes a break below 13,000 points in the DAX30 likely, levelling the path for a run down to 12,900 points and even lower:
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between August 31, 2020, to September 18, 2020). Accessed: September 18, 2020, at 10:00 PM GMT
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between April 24, 2019, to September 18, 2020). Accessed: September 18, 2020, at 10:00 PM GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of the DAX30 CFD 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%, and in 2019, it increased by 26.44%, meaning that in five years, it was up by 34.2%.
Check out Admiral Markets' most competitive conditions on the DAX30 CFD and start trading on the DAX30 CFD with a low 0.8 point spread offering during the main Xetra trading hours.
Discover the world's #1 multi-asset platform
Admiral Markets offers professional traders the ability to trade with a custom, upgraded version of MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5!
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The analysis is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
- Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter "Author") based on the Author's personal estimations.
- To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures that refer to any past performance is not a reliable indicator of future results.
- The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
- Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.