Source: Economic Events August 10, 2020 - Admiral Markets' Forex Calendar
Over the last trading week, the German DAX30 worked within a clearly identifiable range, and the technical levels to watch are between 12,500 and 12,800 points.
After the German index initially attacked the region around 12,500 on Friday, it managed to hold above that level, as US employment data was surprisingly strong after last Wednesday's ADP disappointment.
US Non-Farm Payrolls came in at 1.763 million against 1.48 million expected, with the unemployment rate coming in at 10.2% against 10.5% expected, thus all-around better than expected.
That was enough to let the DAX30 close the week within between 12,500 and 12,800 points, but also, in our opinion, with a bullish tendency.
We believe this because, while negotiations between Democrats and Republicans in the US are still fighting to hammer out a stimulus relief package and based on early comments from both sides they might still be very far apart, US President Trump signed a series of executive orders on Saturday, expanding coronavirus economic relief to US Americans.
While these orders from Trump seem questionable from a legal perspective, they could nevertheless accelerate a final deal in US congress, in our opinion. The creates the potential of an initial bullish impulse, which might easily push the German index above 12,800 points and leaves further room on the upside into the region around 12,970/13,000 points.
If we are wrong, and the DAX fails to break higher, we consider the picture still neutral above 12,500 points, even though a break could be considered short-term bearish, levelling the path down to 11,950/12,000 with a stop-over around 12,200 points:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between April 25, 2019, to August 7, 2020). Accessed: August 7, 2020, at 10:00pm 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%, 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!
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