Source: Economic Events July 8, 2019 - Admiral Markets' Forex Calendar
Since the economic calendar is very thin for the start of the week, we want to focus on the technical side and have a look at the DAX30 CFD.
After Friday's NFPs came in at 224k and significantly above expectation, the German index nevertheless kept on sharpening a bearish divergence on H1 in the RSI.
In general, such a divergence is only an indication that the latest bullish momentum is about to diminish and Long engagements should be carefully considered from a risk-reward perspective.
Still, we see short-term bearish potential at least as low as 12,440/450 points, going hand in hand with the close of the gap which occurred after the announced truce between the US and China in their trade war at the G20 summit at the June 29.
If we get to see such a bearish push, traders should carefully watch the price action against 12,440/450: usually this region should act as a potential long-trigger, but if bulls fail to regain momentum and the DAX30 CFD keeps on dropping and falls below 12,400 points, the bearish divergence could be considered confirmed and further losses are a serious option.
On the other hand: if no bearish momentum is taken on and the DAX30 CFD takes out 12,650 points, further gains up to 12,850/900 are very likely:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between June 17, 2019, to July 5, 2019). Accessed: July 5, 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%.
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD daily chart (between 23 March 2018 to 05 July 2019). Accessed: 05 July 2019 at 10:00 PM GMT
Investing in Forex with Admiral Markets
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 Supreme Edition!
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 are 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 refer 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.