Tuesday, September 25, 2018

DAX30 - 26 September 2018


Fundamental Highlights

Modest gain for the DAX yesterday, closing at 12374.7, as the German WPI figures released were higher than expected with investors' cautiousness on the rise as U.S-China trade war intensifies, while the market awaits the US Federal Reserve economic outlook and interest rate decision to be released today at 18:30 GMT. With the market anticipating a raise in interest rates, Powell's tone and remarks on forward guidance will dictate the price action for the Dollar and the equity markets on a global level.

Technical Analysis

The DAX ended yesterday's session with a bullish reversal bar after retracing to the 2.618 Fibonacci level at 12344.9 and confirming it as a support level. A flag formation on the hourly chart has formed with a target of +258 points in case price breaks above the flag. 12,500 and 12529.1 (Fibo level 3.618) are the next resistance levels if price breaks above 12481.9.

Support: 12344.9 12250.1
Resistance: 12407.4 12481.9

Chart (H1)