Two trades to watch: EUR/USD, Dax

EUR/USD resumes sell-off ahead of PMI data & EZ PPI . Dax attempts a rebound ahead of PMIs.

EUR/USD resumes sell off ahead of PMI data & EZ PPI

EURUSD is edging lower snapping a two-day winning run as the US Dollar rebounds on safe haven flows and rising treasury yields.

US treasury yields remain elevated around 1.50%

Attention will turn to Eurozone composite PMI September which is expected to confirm 56.1 flash reading. Down from 59 in August.

Eurozone PPI is expected to reveal 1.3% MoM increase, down from 2.3%. However, annually PPI is due to rise to 13.5%, up from 12.1%.

US ISM services PMI will also be under the spotlight, particularly the employment and prices sub-components.

Learn more about the Euro

Where next for EUR/USD?

EUR/USD has been trending lower since the start of September. It trades below the descending trendline, 50 & 100 sma.

The RSI is supportive of further downside, whilst it remains out of oversold territory.

Support can be seen at 1.1560 last week’s low. A break below here could open the door to 1.15 round number and high March 9 2020.

It would take a move over 1.1655 the confluence of the 50 sma and the falling trendline and 1.1664 horizontal support turned resistance for bulls to take back control

EURUSD chart

Dax attempts a rebound ahead of PMIs

Stocks and futures across the board are heading cautiously higher on Turnaround Tuesday. Bargain hunters are out after yesterday’s steep selloff.

Several headwinds such as concerns over rising energy prices keeping inflation elevate, supply chain disruptions, labour shortages coming at a time when central banks could start tightening monetary policy unnerved investors. These headwinds remain and could cap gains today.

German services and Composite PMI data will be in focus and is expected to confirm the flash estimates of 56 and 55.3 respectively, down from 60.8 and 60.

Learn more about the Dax

Where next for the DAX?

The Dax has been trending lower since the start of the month. It trades below its 50 sma on the daily chart and below the falling trendline. The RSI is supportive of further downside.

The index is currently testing the 200 sma at 15060. A move below this level and 15000 the psychological level and the weekly low could open the door to 14820 the May.

It would take a move over 15450 the high September 30 to facilitate a move towards 15680 the 50 sma and falling trendline.

DAX chart

 

 

 

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

  1. Open a Forex.com account, or log-in if you’re already a customer.
  2. Search for the market 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 Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.