Tuesday, October 9, 2018

DAX30 - 10 October 2018


Fundamental Highlights

The DAX in the red after reaching lows of 11799 during yesterday's trading session, to then regain some ground and close at 11962.9. U.S. Treasury bond yields continued to climb to new highs in early trading before retreating to end the day lower on the back of comments from President Trump saying that the Federal Reserve was going too fast in raising rates when inflation was minimal and government data pointed to a strong economy. At the same time, Italian government bond yields are taking the same direction on the back of positive comments from Economy Minister Giovanni Tria. The risk-off attitude surrounding the markets got amplified by the release of the IMF report, cutting global growth forecasts. Today, Germany holds an auction for the 10-year bonds at 09:40 GMT.

Technical Analysis

The Dax bounced off the 11802.1 support level, forming a higher low around the 11980 area along with a pennant formation. A bullish break out of the pennant will send prices to test the 12126 resistance area while a bearish break will set back the downtrend in motion with prices testing the 11802 support level.

Support: 11899 11802.1 11706.2
Resistance:.11997.9 12052.7 12126.9

Chart (H1)
dax oct10