DAX

DAx_May27

The DAX broke out from its trading range of 9800/9960 to then further assault the 10/05 swing high of 10110.3 with firm bullish momentum to close at 10125.1 on Tuesday this week (23/05-27/05)

What was interesting with this price activity is the tight range in which we witnessed also coincided with the trading range of mid to latter March seeing that the 10000 level being persistent resistance. Moreover, as this range developed, we saw a break of the upward trend line from February’s lows which may of highlighted to market participants that downside price pressures may of been imminent. However that could not of been farther from the truth, as the 9765/9800 level acted as firm support enticing the bulls back into the market, Tuesdays bullish price activity also saw a  bullish MACD cross which could be suggestive of further higher prices. After the breakout of the range the bullish momentum continued to push prices as high as 10321  breaching the 50% and 61.8% Fibonacci retracement levels of the recent counter trend move.

As the 10000 level was once resistance now becomes short term support should the market retreat from this levels and resistance at 10341 the 76.4% retracement level and the swing high 10529.

GBPUSD

cable_may27

After the attempt to breach the down trend from August 2015 price rolled over to find support at the 1.4475 level to then make a third test of the trend line which it has, for now, successfully breached. This being said, this price activity continues to support the confirmation of the break of the recent head and should pattern a with a potential measuring target of 1.5200, however recent highs of  1.4770 may act as short term resistance keeping the bulls in their place. Should this current trend continue support lies in and around 1.4520/1.4550 and resistance in and around 1.4670/1.4770.  

Added market volatility means increased opportunity but also more risk. To reflect this, ETX Capital may be increasing margin rates on certain markets.

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