Two trades to watch: Dax, Gold

Dax trades around all time high with EZ PPI up next and ahead of US non farm payrolls. Gold is extending mild gains for a third straight session ahead of the US jobs report.

Germany

DAX edges higher after record close on S&P500, EZ PPI up next 

European stocks are edging higher following a fresh record high hit by the S&P500 on Wall Street as investors focus on the US non farm payrolls. 

The European economic docket is quiet with just Eurozone producer price inflation data due to show a 1.2% MoM rise in May, up from 1% in April. 

The data comes as the ECB spars over where to go with monetary policy 

The US payrolls are expected to show 700k new jobs created and unemployment ticking lower to 5.6% 

Learn more about the Dax

Where next for the Dax? 

The Dax continues to hover around its all time high. It trades in a holding pattern, capped on the lower side by the 50 sma and on the upper side by 15800 the all time high.  

The RSI is neutral around 50 and flat as investors await fresh impetus from today’s payrolls. 

Any move higher needs to overcome resistance at 15750 in order to head towards 15800 and fresh all time highs. 

Meanwhile, a move lower would need to break below the 50 sma and horizontal support at 15445 in order to head towards 15250. A move below this level could see the sellers gain traction 

 

Gold edges higher ahead of NFP 

Gold continues to trade below 1800 after its worst monthly performance since November 2016. 

However, the roce is attempting a rebound, with three straight days of gains as concerns over the Delta variant of covid in Asian and UK support demand for the precious metal 

All eyes are on the US non farm payrolls particularly in light of the Fed’s recent hawkish shift which sent Gold tumbling. 

The US jobs report could provide fresh clues as to the timing of the Fed’s next move. 

What to expect from the NFP

Where next for Gold prices? 

Gold trades around 1780 in a familiar range after rebounded off 1751 its two month low earlier this week.  

The MACD’s receding bearish bias favours the buyers for now, however, all depends on the data. 

A strong NFP report could see gold quickly reverse recent gains and drop to 1751 support. However should the data disappoint then Gold could get a boost. Any continued recovery in Gold would need to retake the  100 day ma at 1790 ahead of horizontal resistance at 1800.


How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index 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.
 


More from Trade Ideas

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.