Dax 40 bounces off support as AUD/USD and copper prices advance
Technical analysis of the DAX 40 as it recovers from Thursday’s low while the AUD/USD rally stalls as the price of copper continues to advance.
Macro update
Global equities remain cautious with mixed regional performance: Asian markets traded unevenly overnight while US futures were broadly unchanged, highlighting continued uncertainty around interest rates and geopolitical developments.
China producer prices turn positive after prolonged deflation: China’s PPI moved back into positive territory for the first time in three years, supported by higher energy costs and improving demand conditions.
Oil prices stay elevated on supply concerns: WTI crude hovered near the $100 per barrel level as geopolitical tensions continued to threaten key supply routes and sustain volatility in energy markets.
Bond markets stabilise after recent volatility: Government bond yields were largely steady as investors reassessed expectations for the timing and magnitude of central bank rate cuts.
Dollar steady while yen remains under pressure: The US dollar traded in a narrow range, while the yen stayed weak amid policy divergence despite ongoing intervention concerns.
UK outlook shaped by easing expectations and soft data: Markets continue to price in further Bank of England rate cuts as growth indicators remain subdued and inflation trends show signs of moderation.
DAX 40 recovers from Thursday's low
The DAX 40 is seen consolidating below this week's 24,164 spike high but has managed to recover from Thursday's 23,673 low with the 18 March high at 23,957 being in sight.
Further up sits the 10 March high at 24,061 which may also be reached.
Short-term outlook: bullish while above the 9 April 23,673 low
Medium-term outlook: bullish while above the 2 April low at 22,678
DAX 40 daily candlestick chart
AUD/USD rally takes a breather
AUD/USD's sharp advance from its late March $0.6834 low has taken it to this week's $0.7095 high, right to the March-to-April resistance line which caps for now.
If overcome, the February highs at $0.7136-to-$0.7147 may be reached, and probably also the March peak at $0.7187.
Minor support is seen along the 55-day simple moving average (SMA) at $0.7023.
Short-term outlook: bullish while above the 6 April $0.6877 low
Medium-term outlook: bullish while above the 30 March low at $0.6834
AUD/USD daily candlestick chart
Copper price continues to rise
The price of Copper continues to gradually advance from its $5.2463 four-month March low, but is seen losing upside momentum around its 55-day simple moving average (SMA) at $5.7484.
A rise and daily chart close above this week's high at $5.8060 high is needed for the 16 March high at $5.8585 to be hit next.
Good support is now found between the February-to-March lows at $5.6563-to-$5.5640.
Short-term outlook: bullish while holding above the 7 April $5.5385 low
Medium-term outlook: bullish while trading above the 22 March $5.2463 low, failure there would turn the forecast bearish, targeting the $5.0000 region
Copper daily candlestick chart
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
The value of shares, ETFs and other ETPs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
