Friday, July 12, 2019

DAX30 - 12 July 2019


Fundamental Highlights

The DAX continued to post consecutive declines this week as it fell by 0.33% on Thursday. The DAX was uninfluenced by the ECB’s monetary policy meeting minutes but was weighed down by the release of an IMF report highlighting Brexit and global trade uncertainty as risks to the Eurozone economy and calling for easier monetary policy from the ECB. Moreover, trade tensions simmered as President Trump criticizes China on trade practices and threatens to retaliate against France’s latest digital tax on US tech giants. Market participants should look to trade headlines and the Eurozone’s industrial production figure today to influence sentiment and price action on the DAX.

Technical Analysis

The Dax extended losses by 41 points to end at 12332 on Thursday. The index has held below the ascending trend line from June’s low and slid below the support at 12360 towards the 12300 level to suggest that further weakness may be in store. Should the 12300 level fail as support, we will look for declines to extend to the support at 12250 followed by 12200. We will look for a sustained move below the 20-day MA around 12400 to maintain selling pressure, with a move above 12450 required to drive the index higher.

Support: 12300/12250
Resistance: 12400/12450

Chart (H4)