DAX30 bulls sceptical after Powell’s Jackson Hole speech, 13,000 in focus
Source: Economic Events August 31, 2020 - Admiral Markets' Forex Calendar
As FED chairman Jay Powell took a very dovish stance in his speech in Jackson Hole on Thursday, the DAX ceased taking on further bullish momentum after its strong start into the last week.
Market participants seemed to have been anticipating what was finally delivered on Thursday.
Powell brought up "average inflation targeting", meaning that the FED will allow inflation to run moderately above the FED target rate of 2% for a (not prolonged) period of time.
In general, and in our opinion, this stance can, all in all, be considered bullish for Equities, even though the communication from Powell does not really differ that much from what the FED already delivered over the past years.
Or, to put it differently: it remains to be seen how much influence the Fed has on inflation, especially after not reaching its 2% target even before the Corona-pandemic.
When looking at the price action in Equities and in the DAX30, it becomes clear that market participants are obviously sceptical, a scepticism which can be seen in the attack at the region around 13,000 points on Friday.
Into the start of the week, the region around 13,000 points, respectively around the Friday lows at 12,950 points, is in our focus.
A break below this makes a bearish acceleration likely, activating the first target at from around 12,750/800 points, to around 12,600 points:
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between August 10, 2020, to August 27, 2020). Accessed: August 27, 2020, at 10:00 PM GMT
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between April 01, 2019, to August 28, 2020). Accessed: August 28, 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 after 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 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 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 modelled 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.