Monday, June 24, 2019

DAX30 - 24 June 2019


Fundamental Highlights

The DAX traded 0.13% lower on Friday as the enthusiasm over the prospect of easier monetary policy from the Fed and ECB wears out as tensions between the US and Iran simmer. Moreover, as we approach the G-20 summit, US-China trade relations highlights the agenda of concerns as the US administration blacklisted 5 additional Chinese companies. In terms of data, manufacturing PMI figures out of Germany and the Eurozone improved yet remain in contraction territory and failed to provide any support. Today Germany publishes business sentiment figures which are estimated to show mild declines and may do little to impact price action given the established view on a slowing German economy. While risk appetite may find support from the prospect of looser monetary policy from global central banks, it should remain limited by the uncertainties over US- Iranian and US-China tensions and leave price action to be influenced by new-driven sentiment.

Technical Analysis

The DAX declined by 15 points as it managed to find support around the zone of 12280/12300 before ending at 12339. DAX futures pointed lower this morning and would be poised for a short term bearish view should weakness extend well below the 12280 level. Look for a decline below 12280 to target the support at 12225 and a sustained move above yesterday’s close to indicate buying pressure. Above the 12400 level, look for the DAX to re-test the resistance zone of 12440/12450 acting as a barrier for further advancements towards the 12500 level.

Support: 12280/12240
Resistance: 12400/12450

Chart (H4)