DAX 30 & Euro Stoxx 50 Outlook: Reaching a Turning Point?
DAX 30, Euro Stoxx 50 Price Analysis & News
DAX 30: Testing Nerve of Dip Buyers
After backing off the Jan lows, upside in the DAX has had a pause for breath with the index coming under pressure throughout the European morning. Consequently, this has opened up the doors to support at 12450 (76.4% Fibonacci retracement), which will provide the first opportunity as whether dips buyers will keep the index afloat. Failure to hold could raise downside risks of a 200DMA (12120) touch before the 12000 level.
DAX 30 Price Chart: Daily Time Frame
Euro Stoxx 50: Backing Off 200DMA
The recent positive momentum in the Euro Stoxx 50 has eased notably in today’s session with the index backing off the 200DMA (3361). In turn, this raises questions as to whether this is the markings of a fresh retracement in the Stoxx 50, therefore raising the risk of a move towards support at 3246, which marks the 61.8% fib retracement of the Q1 sell-off.
Euro Stoxx 50 Price Chart: Daily Time Frame
--- Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.