Tuesday, July 9, 2019

DAX30 - 09 July 2019


Fundamental Highlights

The DAX traded 0.20% lower on Monday amidst mixed economic data. The positive news came from Germany’s trade balance which widened to 18.7B while the downside resided in industrial production data. The figure came below its estimate to show a rise of 0.3% MOM and a drop of 3.7% YOY providing further evidence to weakness in factory activity following last week’s dismal factory orders data. Having said that, Germany’s gloomy economic outlook is weighing on sentiment and taking away from support that the US-China trade truce might have otherwise provided. Today, there are no major economic releases out of the Eurozone and the DAX may take directional cues from Wall Street as a slew of Fed members are scheduled to speak.

Technical Analysis

The DAX lost 25 points to end at 12543 on Monday as the price ranged over the support at 12500 whilst holding below the 20-period MA to indicate bearish bias. Futures are pointing lower this morning as price broke below the 12500 level to target the lower support at 12440 followed by 12400. Moreover, There is a confluence of support provided by the 12400 level and ascending trend line from June’s low separating the DAX from negative territory. Look for a sustained move below 12500 to indicate selling pressure with the 20-period MA at 12570 acting as dynamic resistance as price slides down the lower band.

Support: 12440/12400
Resistance: 12500/12570

Chart (H4)