English
DAX 40 sidelined as AUD/USD rallies and copper price slips
Technical analysis of the DAX 40 as it range trades while AUD/USD rallies and the price of copper slips.
Macro update
Oil prices surge on escalating Middle East tensions:
Brent crude oil climbed back above $100 per barrel as disruption to the Strait of Hormuz intensified supply concerns and inflation risks.
Energy shock heightens inflation and growth concerns:
Analysts warn that higher oil prices could push inflation higher and weigh on global gross domestic product (GDP) as geopolitical risks increase.
Global equities mixed amid uncertainty:
Asian markets traded unevenly while US futures edged lower, reflecting volatility driven by energy prices and conflict-related headlines.
US equities supported by tech strength:
Wall Street opened the week higher, led by gains in AI and semiconductor stocks on robust demand expectations.
UK faces rising fuel supply risks:
Ongoing disruption to global oil flows raises the likelihood of shortages and higher energy costs, adding upside pressure to UK inflation.
Central banks in focus amid volatility:
Markets continue to assess the policy outlook, with the Reserve Bank of Australia (RBA) delivering a second consecutive 25bp hike and major central banks navigating rising energy-driven inflation pressures.
Geopolitical risks remain elevated:
Iran warned it could intensify missile strikes and threatened oil flows through the Strait of Hormuz, underscoring ongoing volatility despite hopes of de-escalation.
DAX 40 sidelined
The DAX 40 is stuck in a sideways range within Friday's 23,762 - 23,294 extremes, a break out of which is likely to determine the short-term trend.
A rise above 23,762 may lead to the 10 March high at 24,061 being reached whereas a fall through 23,294 may push the 23,000 region to the fore.
Short-term outlook:
Bullish while above last week's low at 23,294.
Medium-term outlook:
Neutral with a slightly bullish stance while above the 9 March low at 22,928.
DAX 40 daily candlestick chart
AUD/USD bounces back following rate hike
AUD/USD has swiftly bounced off this week's $0.6980 low amid the RBA's second 25 basis point rate hike in as many months. The next upside target is the 23 February high at $0.7112, followed by the $0.7129 - $0.7136 region.
Minor support may be spotted around the 20 February low at $0.7016.
Short-term outlook:
Bullish while above the early March $0.6945 low, targeting the $0.7147 - $0.7158 area.
Medium-term outlook:
Bullish while above $0.6897, eyeing the January 2023 peak at $0.7158.
AUD/USD daily candlestick chart
Copper price slips
The price of copper is seen coming off Monday's $5.8585 high and is about to test minor support at the early March $5.7465 low. If slipped through, the $5.7000 region may be revisited.
Short-term outlook:
Neutral while holding above the early February $5.5640 low.
Medium-term outlook:
Neutral while trading above the early February $5.5640 low but below its late February $6.1413 peak.
Copper daily candlestick chart
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Follow us online
