Brexit deal or no deal – that’s the question for the DAX30 CFD

By Admiral Markets

Source: Economic Events October 21, 2019 – Admiral Markets’ Forex Calendar

While the economic calendar is thin for the start of the week, what’s of higher interest is the expectation of finally seeing a Brexit deal.

Over the weekend, the British parliament voted to put off a decision on the deal negotiated during the prior week, forcing Boris Johnson to ask the EU for yet another Brexit delay.

With that in mind, it remains unclear in which direction the equity markets, especially the DAX30 CFD will move.

When looking at the price action of the last week, one could assume that any deal should be initially bullish (and vice versa…), but with the erratic price action over the last few days has likely priced in a lot of these types of deals, so the positive impact remains low, at least in our opinion.

From a purely technical perspective, the key level on the downside can be found around 12,600 points. A break lower makes a weak weekly start very likely, activating the region around 12,400 points as a first target on the downside.

On the upside the main focus can be found around the pre-weekly highs around 12,800/820 points where a break higher makes further gains up to 12,900/930 points an option:

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between October 1, 2019, to October 18, 2019). Accessed: October 18, 2019, at 10:00pm GMT

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between July 12, 2018, to October 18, 2019). Accessed: October 18, 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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