Sunday, October 7, 2018

DAX30 - 08 October 2018


Fundamental Highlights

The DAX fell sharply on Friday, losing 132.1 points and closing at 12093.5 on the back of strong economic data released from the U.S - unemployment rate dropping to 3.7%, its lowest level in 49 years – pushing treasury yields higher which spread across Europe and weighed down on global equity markets. On another note, Italy's budget plan is still exacerbating Eurozone's stability, adding additional pressure on European sovereign bonds, as Italy's Deputy Prime Minister Matteo Salvini accused top European Commissioners of wrecking Europe. In economic releases, Germany's Factory Orders rebounded on foreign demand in August registering 2% (MoM – August), beating expectations of 0.7%, and reversing a 0.9% drop in July. Today, German Industrial Production is set to be released at 06:00 GMT.

Technical Analysis

Bearish reversal bar on the 4H chart (to be confirmed on close) along with increasing bearish momentum on the MACD indicator and a break of the 12052.7 support level (to be confirmed on hourly close) are indicating further downside for the DAX with our respective support levels as price targets.

Support: 11989.2 11940.1 11899
Resistance:.12052.7 12126.9 12172.7

Chart (H1)