Friday, July 5, 2019

DAX30 - 05 July 2019


Fundamental Highlights

The DAX traded 0.11% higher on a day of low-volume trading due to US markets being closed. In terms of data, Eurozone’s retail sales had a muted impact on the DAX as it declined by 0.3% from the previous month. Today Germany published its factory orders for May which showed a sharp decline of 2.2% from the previous month and adds to the nation’s gloomy economic outlook burdened by the US-China trade war. Today, the DAX should take directional cues from Wall Street as the US publishes the anticipated US non-farm payroll report which carries a large influence as it impacts markets’ expectations for looser monetary policy from the FED. On trade news, China demanded that the US lifts existing tariffs as a condition to reaching a trade deal. Traders should monitor trade headlines to dictate market sentiment and current status of US-China relations.

Technical Analysis

The DAX added a modest gain of 13 points to record its 7th bullish day and end at 12629 on Thursday. Look for a sustained move above 12600 to indicate buying pressure and a break above the resistance of 12670 to enable further gains towards higher resistance at 12730. Alternately, a move below the 20-period MA and support of 12580 would drive the DAX lower to find support at 12500.

Support: 12580/12500
Resistance: 12670/12730

Chart (H4)