Source: Economic Events October 14, 2019 - Admiral Markets' Forex Calendar
Friday's developments in the US-Chinese trade talks resulted in the presentation of a partial trade deal between the US and China. This caused some heavy price action fireworks by happy DAX30 CFD bulls into the weekly close.
The German index recaptured 12,150 points and found, in addition to the lessening of US-Chinese tensions, another bullish driver with a Brexit deal finally on the horizon between the EU and UK, too.
As a result, the DAX30 CFD gained more than 2%, and went for a test of the region around 12,500 points.
The start of this week has a key level to watch: a break higher activates the region around the current yearly highs around 12,650 points.
Still, we remain a little cautious and try to not become overly optimistic in regards to a direct walk through on the upside since the mode looks very extended and a consolidation, even though at an elevated level slightly below 12,500 points, seems likely.
After the extended mode is reduced then over time, a test of 12,650 points in the days to come has a high probability.
A sharper pullback (even though unlikely) would find a first target and solid support around the Friday-breakout level around 12,150 points:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between July 5, 2018, to October 11, 2019). Accessed: October 11, 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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