European markets rose on Friday as Apple's record surge helped lift technology stocks and weakness in the euro and the pound provided a boost to exporters. German stocks opened firm this morning, however some profit taking is expected after the strong surge. In the news, China's central bank raised the reserve requirement on foreign exchange forward positions, making it difficult for traders to bet against the yuan. Asian markets are mostly higher. Just out a few minutes ago, Germany's factory orders decreased the most since early 2017. Factory orders declined 4% month-on-month in June, reversing a 2.6% increase in May. This was the biggest fall since January 2017.
From a technical perspective, we expect a strong opening in the DAX however some profit taking is expected as we crossed the 200-period moving average last Friday reversing the uptrend. We are now trading below the 200MA, and therefore weakness is expected to continue with the €12,410 level as key support.
Support: 12410 12160
Resistance: 12640 12765