German stocks look set to open lower on Wednesday ahead of the Federal Reserve's monetary policy decision later today and the BoEs 'Super Thursday' event. The Fed is expected to leave interest rates unchanged, but the policy statement may offer additional cues on the rate outlook. The German DAX finished marginally higher on Tuesday, with positive corporate earnings from DAX components. In focus on Wednesday are the manufacturing PMI readings for June due from Germany, the Eurozone and the UK.
The DAX index continued to range and consolidate on Tuesday as traders try to hold on to the gains that they have made over the course of last week. The bulls did not manage to break the €12,880 and so this price remains a strong resistance level for now. Short-term traders should take advantage of this market as it's been respecting the various support-resistances so far, however be aware of the various fundamental and global factors that might cause a breakout one way or another.
Support: 12780 12640
Resistance: 12880 12900