Friday, August 2, 2019

DAX30 - 02 August 2019


Fundamental Highlights

The DAX ended 0.53% higher on Thursday as it escaped trade pessimism that came about later in the day. Moreover, there was support from economic data as the Eurozone and Germany showed a slight improvement in manufacturing PMI figures, however remain in contraction territory. Today the Eurozone releases retail sales data which will likely be overshadowed by the US’s monthly jobs report. On trade news, President Trump announced plans to impose new tariffs on China should trade negotiations fail to progress. The trade sensitive DAX should see limited upside potential as market sentiment turns weak cautious due to global trade uncertainty.

Technical Analysis

The DAX gained 64 points to end at 12253 on Thursday. The price managed to edge slightly above the resistance at 12250 however remained limited by the 20-period MA. Futures are pointing lower this morning as the price dipped below the 100-day MA at 12100 to trade below the 12000 level. Look to the 20-period MA to act as dynamic resistance on the DAX with a sustained move below 12000 required to exert downside pressure and target the support at 11900 followed by 11830. A move back above the 50-day MA at 12250 would be required to bring about upside potential.

Support: 12000/11900
Resistance: 12160 /12250

Chart (H4)