Market Analysis: All eyes on Wednesday’s US-China trade talks for DAX30 CFD movement

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  • 31.01.2019
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US-China trading and investment

DAX30 CFD overview January 30, 2019

Source: Economic Events January 30, 2019 – Admiral Markets’ Forex Calendar

Even though the DAX30 CFD saw a mixed start into the last week of trading in January, the overall approach stays bullish with a target of around 11,550/600 points (December highs) on the upside. From a technical perspective, the bullish outlook on an hourly time frame for the DAX30 CFD is sustained as long as we trade above 10,970/11,000 points.

From a broader perspective, for today (and also tomorrow) all eyes will be on the US-China trade talks. As already pointed out in our weekly market outlook, speculation surrounding these talks was already capable of countering the dovish ECB statement, delaying a bullish reaction with new weekly highs.

US Commerce Secretary Wilbur Ross warned last Thursday in an interview on CNBC that the US and China were “miles and miles apart on trade resolution”, pushing the DAX30 CFD lower as consequence.

Currently, expectations hinge on the growing tension between the US and China over technology provider Huawei. Last Monday, the US filed criminal charges against an executive within the company, accusing them of stealing trade secrets and committing bank fraud. A swift resolution to this push/pull in the coming days doesn’t look likely.

But, with this in mind, equity markets and the DAX30 CFD seem very stable and any positive sign of approximation between the two states could trigger upward movement in the DAX, pushing up the DAX30 CFD with a break above the pre-weekly high around 11,320 points, moving towards 11,550/600 points in the second half of the week.

DAX30 CFD hourly movement

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between January 10, 2019 to January 29, 2019). Accessed: January 29, 2019 at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of the DAX30 CFD increased by 2.65%, in 2015, it increased by 9.56%, in 2016, it increased by 6.87%, in 2017, it increased by 12.51%, in 2018 it fell by 18.26%, meaning that after five years, it was up by 10.5%.

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