Wednesday, July 17, 2019

DAX30 - 17 July 2019


Fundamental Highlights

The DAX ended 0.35% higher on Tuesday as high end European retailers report better than expected earnings. Meanwhile on economic data, it comes as no surprise that Germany’s ZEW economic sentiment figure fell deeper into negative territory given the recent disappointing data on the export nation’s manufacturing sector. The nation’s economic outlook remains bleak and burdened by the US-China trade dispute that is back on markets’ agenda of concerns as President Trump reiterates tariff threats on China and casts doubt over trade talk progress. Today, the Eurozone publishes June inflation figures, and that may fuel prospects of easier monetary policy from the ECB and buoy the DAX , should CPI figures fall below expectations. Moreover, traders should monitor trade headlines as President Trump’s recent remarks may weigh on market sentiment and the trade-sensitive DAX.

Technical Analysis

The DAX traded 43 points higher to end at 12430 on Tuesday. While the price has found support at the 12300 level, it is also seen struggling to trade above the dynamic resistance outlined by 50-period MA around 12430. In order to reverse the DAX’s bearish bias, we would need to see the index hold above the 50-period MA and overcome the resistance zone of 12480/12500. Otherwise, the pullback is likely to extend towards the 50-day MA around 12190. Look for a move below the 12380 level to indicate selling pressure and target the support at 12300.

Support: 12380/12300
Resistance: 12450/12500

Chart (H4)