Technical analysis of the DAX 40 as it hits an all-time high while AUD/USD bounces off support and the price of copper consolidates.
DailyFX Real Time News 2026-07-03 09:22:31
Context: The DAX 40 index has reached an all-time high, driven by rotation out of expensive US technology stocks, while AUD/USD has bounced off support and the price of copper has consolidated. This market movement comes as investors react to various economic data and events, including weak US jobs data and a rebound in Asian equities. The DAX 40's surge is attributed to a shift in investor sentiment ahead of the US Independence Day weekend.
Key Facts
- The DAX 40 index hit a new all-time high, with the next upside targets being the minor psychological 26,000 mark, followed by the 161.8% Fibonacci extension of the October 2022-to-May 2024 bull market, projected higher from the August 2024 low at 28,400.
- AUD/USD's descent took it to a three-month low at $0.6865, before bouncing back, with the May-to-July downtrend channel resistance line at $0.6956 acting as minor resistance ahead of the 13 April and 11 June lows at $0.6979-to-$0.6988.
- The price of copper has consolidated, with its decline to its late June $5.8951 low followed by a gradual recovery to this week's $6.2309 high, and further sideways trading between these extremes seems to be at hand.
- The Dow Jones reached another record high after June's non-farm payrolls report showed just 57,000 jobs were created, well below forecasts of 110,000, easing concerns over near-term Federal Reserve tightening.
- The dollar index fell around 0.6% over the week as expectations of further Federal Reserve rate hikes eased, lifting the euro to a two-week high and helping sterling record its strongest weekly performance in almost three months.