Thursday, September 19, 2019



Fundamental Highlights

The German blue-chip index traded nearly 0.15% higher on Wednesday. Market participants remained cautious as the Fed delivered a rate cut after the European market closed. Economic data failed to provide direction as the Eurozone annual rate of inflation held steady at 1%. Today, the DAX will respond to the FED’s rate cut decision and future monetary policy outlook which didn’t allude to an easing bias as markets were expecting. Today, there are no major economic releases out of the Eurozone to provide direction in the day. Thus, traders should monitor Brexit and trade headlines as US and Chinese officials are set to hold deputy level trade discussions today and the DAX is highly influenced by the global economic outlook.

Technical Analysis

The DAX traded slightly higher as it added 17 points to end at 12389 on Wednesday yet remained directionless. Dax futures are pointing higher this morning as the price reached resistance near 12450 however remains within the constricting Bollinger bands. Look for a sustained move above 12400 to indicate buying pressure with a trade above 12450 required to target the higher resistance zone of 12500/12520. Failure to trade above 12400 would leave the Dax ranging lower with immediate support found at 12300. Below 12300, the DAX should find support at 12250 followed by 12200 which is the level separating the DAX from a bearish phase.

Support: 12300/12200
Resistance: 12450 /12500

Chart (H4)