Tuesday, May 7, 2019

DAX30 - 07 May 2019


Fundamental Highlights

The Dax Index posted sharp losses on Monday as it declined by 1.01% to end at 12286. The sell-off was prompted by President Trump’s threats to raise tariff rates on China and left positive data in the shadows of a flared up trade dispute. Better than expected results were seen in Eurozone’s retail sales figure and Services PMI data out of Germany and the Euro region. Today’s economic calendar delivers German industrial production and factory orders data while the Eurozone publishes economic forecasts. Meanwhile, Sino-US trade negotiations are scheduled to resume tomorrow however cautious market sentiment may offset any indication of an improved economic outlook in the Eurozone as traders will monitor US-China headlines.

Technical Analysis

The DAX Index plunged early Monday before finding support at 12150 and followed through the recovery on Wall Street to limit further losses and end at 12286. The short-term outlook is neutral to bearish as price is holding below the 20-period MA and The DAX may be poised for a deeper pullback below 12150 should price fail to hold above the 12250 level. Alternately, holding above 12250 maintains buying pressure while a break above 12330 would be required to restore the bullish view.

Support: 12250/12150
Resistance: 12330/12400

Chart (H4)