Source: Economic Events August 17, 2020 - Admiral Markets' Forex Calendar
With the push back above 13,000 points last week on Tuesday, bulls seemed to have everything under control and the path seemed to have been levelled for a deep run back above 13,000 points.
On Friday and into the weekly close it became clear that the push was very likely a fake-out and the important support region around 12,800 points again came into focus.
While the economic docket is thin into the start of the week and earnings season nearly through, recent spikes in Covid-19 cases across the European continent and in Germany have resulted in rising speculation of a second wave and a resulting lockdown.
While we see the chances of such a lockdown as quite low, given the potentially massive negative economic impact, speculation and fear alone might be enough to trigger at least a short-term risk-off tendency, which could result in a sustainable break to below 12,800 and a run to as low as 12,500 points.
In addition, the US Congress and the White House are still struggling to reach a deal on a coronavirus relief package which brings our attention to the question of how much of such a relief package might have been priced into US equities over the course of the past weeks and, thus, into European equities and, here, the DAX30, too.
Fears of a break lower might only diminish with the German index breaking above 13,100 points in the days to come, then switching the bulls' focus to the region around 13,200 points:
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between July 27, 2020 and August 14, 2020). Accessed: August 14, 2020 at 10:00 PM GMT
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between March 18, 2019 to August 14, 2020). Accessed: August 14, 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 rose 6.87%. In 2017, it increased by 12.51%. In 2018, it fell 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 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 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.