Wednesday, September 26, 2018

DAX30 - 27 September 2018


Fundamental Highlights

The DAX edged lower in cautious trading on Wednesday, losing 26.3 points and closing at 12348.8, as investors priced in the latest monetary policy update by the U.S Federal Reserve. Chairman Powell reiterated that the FED is going to keep raising interest rates (one more hike forecasted before the end of 2018), while Asian markets with high dollar borrowings are adjusting their base rate accordingly. In stock-specific news, Daimler and Deutsche Bank shares fell on news of a change in CEO and a consideration of a merger scenario with UBS, respectively. In economic news, GfK German Consumer Climate released today was better than expected at 10.6 vs. 10.5. Later in the day, the ECB Economic Bulletin will be released at 08:00 GMT, along with M3 Money Supply and Private Sector Loans. At 12:00 GMT, the German CPI data will be released. ECB President Draghi and ECB’s Praet will be speaking at 13:30 and 16:00 GMT respectively.

Technical Analysis

The DAX ended yesterday's session with a bearish engulfing bar on the daily chart, while respecting our downtrend parallel channel on the hourly chart. The 20 period SMA already crossed the 50 period SMA from above indicating a bearish change in market sentiment.

Support: 12344.9 12250.1 12176.9
Resistance: 12407.4 12481.9

Chart (H1)