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 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.

 


 

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.