What happened in March?
Last month was an interesting month with article 50 being triggered and a few other major news releases making the markets volatile particularly at the beginning of the month and then article 50 was triggered the FTSE100 and the DAX moved sideward. For the FTSE100 and the DAX it was a bullish month. If you was to buy the Dax on the first day of the month and left it till the last day you would of had a gain of 504 pips... If you were to do that on the FTSE100 you would have had 115 pips so collectively if you was long on them two from the beginning of the month to the end you would of earned yourself 619 pips out of two trades but lets get back to reality as you would of been stopped out by you dynamic stop loss within the first week.
So what's on the cards in April?
At the start of April we could see the peak of the DAX and the FTSE100 the main focus at the beginning of the month is the US dollar there are plenty of 'red flag' news releases that could have a force on the euro and the pound in turn effecting the FTSE100 and the DAX. The end of the month has a few 'Red flag' events with the euro and the pound so it will be more volatile for these two at the end of the month however Wednesday the 5th through to the Friday the 7th will be choppy for these two. Follow this link to see the forex calendar. www.forexfactory.com/
It can be difficult to say where these two are going to finish at the end of April but here are some key areas simplified.
if the dax continues its bullish trend we could see the break of resistance and price will more than likely bounce off of resistance 2 and one. If the Dax starts to correct its self where its been over extended we could see price hit resistance. I would still be looking to go long in this instance so for me I would be waiting for the price to hit support 1 and look for a long setup on a smaller time frame..
As you can see on the graph the FTSE100 is a bit up and down (mainly down) but what you have to look at is the big extension that happened on the 1st of March. After big moves they try to correct there self's and this is what's happening now. For me I would leave the FTSE until it decides whether it wants to bounce off of support 1 or close beneath and continue the short bearish trend.
price forecasts are based on historical data and future news releases and are not a guarantee.
Author: Ashton Hunt
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