Two trades to watch: DAX, EUR/GBP
DAX adds to last week’s gains on Ukraine optimism
Along with its European peers, the DAX is heading for a stronger start on the open on hopes of a peaceful end to the Ukraine crisis.
The next round of peace talks is due today, and both sides sound the most positive yet over the prospects for the negotiations.
According to US Deputy Secretary of State Wendy Sherman, Russia showed signs of willingness to progress negotiations. That said, the fighting continues on the ground.
There is no high impacting German data due; investors will remain focused on Russia Ukraine developments.
Where next for the DAX?
The DAX is extending its rebound from 12480 to the 2022 low. The move over the falling trendline dating back to mid -February and the bullish crossover on the MACD keep buyers hopeful of further upside. A move above 14090 last week’s high is needed to test 14800, a level that has offered support several times over the past year.
Meanwhile, sellers are still encouraged by the 60 SMA crossing below the 100 SMA. Sellers would be looking for a move below 13250 Friday’s low to open the door to 13000 round number. A move below 12500 could spark a steeper selloff.
EUR/GBP rises on upbeat mood, BoE moves into focus
EURGBP is heading higher at the start of the week, adding to gains from last week.
The improved sentiment surrounding Ukraine is helping to buoy the euro. Meanwhile, the pound is falling ahead of the BoE rate decision later in the week.
Spanish retail sales rebounded strongly in January, jumping 4% after falling 2.3% in December.
The BoE could hike rates for a third straight meeting as inflation continues to surge. However, fears of the BoE acting aggressively to tighten monetary policy, as growth is set to slow, potentially sending the UK into recession, weighs on GBP.
There is no high-impact UK data due today.
Where next for EUR/GBP?
EUR/GBP trades within a falling channel since late September. The pair rebounded off a 5 year low of 0.82 last week, retaking the 50 sma before hitting resistance at the falling trendline resistance and easing lower.
The pair trades trapped between the 50 and 100 sma. The RSI is supportive of further upside. Buyers will need to reake 0.84 round number in order to expose the 100 sma at 0.8415 and 0.8440, the falling trendline resistance. A move above 0.8480 the 2022 high could see buyers gain momentum.
How to trade with City Index
Follow these easy steps to start trading with City Index today:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels
- Place the trade.
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.
Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Contracts for Difference (CFDs) are not available to US residents.
FOREX.com is a trading name of GAIN Capital - FOREX.com Canada Limited, 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA is a member of the Canadian Investment Regulatory Organization and Member of the Canadian Investor Protection Fund. GAIN Capital – FOREX.com Canada Limited is a wholly-owned subsidiary of Stonex Group Inc.
Complaints are taken very seriously at FOREX.com. You can view our complaints procedure here.
© FOREX.COM 2025