ForexYell
Short

DAX Having a Difficult Time Catching a Bid, Seen As EUR Positive

INDEX:DAX   DAX Stock Index
There has been a clean inverse relationship in the DAX             Stock Index and the EURUSD             . This means that a top in the DAX             has correlated with a low in the EURUSD             . Since we've traded lower on the DAX             from the mid-March & mid-April highs, EURUSD             has pushed higher. If DAX             makes another move lower, that would favor a push higher in EURUSD             .

A move higher in EURUSD             is highly unpopular as shown via DailyFX's Speculative Sentiment Index or SSI             . The ratio of long to short positions in the EURUSD             currently stands at -2.01 as 33% of traders are long. From a contrarian perspective, this favors a push higher in EURUSD             and if the inverse relationship holds, then we'd also expect a leg lower in the DAX             .

Also, an equivalent decline of the 2H 2014 in the DAX             from the Mid-March / Mid-April tops would take the DAX             down around 10,327. This is roughly a few hundred points north of a internal resistance turned support point from the Dec             8th, 2014 high when EURJPY             peaked.


Lower high of 11,926 seen as critical resistance and a break above that level would favor EUR lower pleasing many retail traders.
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out