Wednesday, June 26, 2019

DAX30 - 26 June 2019


Fundamental Highlights

The DAX ended 0.38% lower on Tuesday with the rise of geopolitical tensions between the US and Iran, and trade uncertainty ahead of the G20 summit meeting this weekend. Today’s economic data revealed German consumer climate index declined below its estimate and adds to pessimistic outlook reinforced by weak business sentiment figures this week. Traders should look to Wall Street to provide the DAX with directional cues today as the US publishes core durable goods orders data. Moreover cautious sentiment dominates as the prospect of easier monetary policy from global central banks may be overshadowed by Middle East tensions and the apprehension over the outcome of the G20 summit.

Technical Analysis

The DAX held below the 12280 level on Tuesday and dipped below the support at 12200 before ending at 12228. The price continued to tread below the 20-period MA and is pointing to further declines along the lower Bollinger band. Look for a sustained move below 12200 to reinforce the bearish view and drive price towards the support provided by the 50-day MA around 12140. Meanwhile, the price would have to edge above the resistance zone of 12280/12300 to restore the bullish outlook.

Support: 12170/12130
Resistance: 12280/12360

Chart (H4)