European Open: DAX considers its next breakout, US PPI in focus

A bullish reversal at support appeared on the DAX yesterday, so we’re on guard for its next bullish breakout.


Asian Indices:

  • Australia's ASX 200 index rose by 61.5 points (0.88%) and currently trades at 7,054.20
  • Hong Kong's Hang Seng index has risen by 348.47 points (1.78%) and currently trades at 19,959.31
  • China's A50 Index has risen by 186.31 points (1.39%) and currently trades at 13,577.86


UK and Europe:

  • UK's FTSE 100 futures are currently up 15 points (0.2%), the cash market is currently estimated to open at 7,522.11
  • Euro STOXX 50 futures are currently up 13 points (0.35%), the cash market is currently estimated to open at 3,762.35
  • Germany's DAX futures are currently up 64 points (0.47%), the cash market is currently estimated to open at 13,764.93


US Futures:

  • DJI futures are currently up 101 points (0.3%)
  • S&P 500 futures are currently up 54 points (0.4%)
  • Nasdaq 100 futures are currently up 12 points (0.29%)




Asian markets tracked Wall Street higher, with all major benchmarks across the region posting gains. The exception was the Nikkei as Japan’s market were closed to celebrate ‘mountain Day’. Ranges were very tight for currency pairs, most of which simply retraced slightly against yesterday’s moves. This means that the USD was the strongest major, but that’s not to say there is any strength behind these moves.


Gold is beneath yesterday’s low which confirms the bearish hammer om the daily chart. Given the hammer failed to close above $1800 then we suspect we’ve now entered a corrective phase over the near-term, but we’d consider bullish setups above $1770 should they present themselves in due course.



FTSE 350 – Market Internals:


FTSE 350: 4186.07 (0.25%) 10 August 2022

  • 295 (84.29%) stocks advanced and 50 (14.29%) declined
  • 9 stocks rose to a new 52-week high, 4 fell to new lows
  • 38.86% of stocks closed above their 200-day average
  • 91.14% of stocks closed above their 50-day average
  • 21.71% of stocks closed above their 20-day average



  • + 13.59% - TP ICAP Group PLC (TCAPI.L)
  • + 12.63% - Admiral Group PLC (ADML.L)
  • + 12.21% - Aviva PLC (AV.L)



  • ·-8.06% - HALEON PLC (HLN.L)
  • ·-5.52% - Drax Group PLC (DRX.L)
  • ·-5.48% - GSK plc (GSK.L)



DAX Daily Chart:

A bullish engulfing candle has formed on the daily chart, which respected the 20/50-day eMA’s pivotal support level. We suspect yesterday low marks a swing low, which would be its third higher low since July. We would consider bullish setups within yesterday’s range should prices retrace today. A break above yesterday’s high assumes bullish continuation and brings the 14,000 resistance zone into focus – a break above which opens up a run for the 200-day eMA / 01,200 resistance zone.



DAX 30 trading guide



Economic events up next (Times in BST)

There’s not much in the way of European macro data for traders today, so we need to wait until 12:00 BST for Mexican industrial output. Although the main event for the region is at 19:00 BST when the Mexican central bank is expected to raise rates by 75bp.

US data at 13:30 is also worth keeping an eye on. Jobless claims have been creeping higher in recent weeks, and is one of the worrying metrics that undermines the strong NFP prints of late. We’ve also seen job openings fall and layoffs rise, so another rise of jobless claims plays into a weaker employment market theme. And as we’re fresh on the back of soft inflation data, markets would love to see weaker producer prices today to further cement the potential of peak inflation having been seen.





How to trade with

Follow these easy steps to start trading with today:

  1. Open a account, or log in if you’re already a customer.
  2. Search for the pair you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.


Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account