News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • The New Zealand Dollar’s bullish breakout attempt in early-September was rebuffed. Price action at the end of the month is telling a different story. Get your market update from @CVecchioFX here:
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year)
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
DAX 30 Outlook: IFO Business Data Shows Dampening Sentiment

DAX 30 Outlook: IFO Business Data Shows Dampening Sentiment

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • DAX 30 struggles to keep bullish momentum
  • German IFO Business data falls unexpectedly

The DAX 30 is dipping lower again to start the new week after an impressive rebound at the end of last. A week ago it was concerns about a sharp rebound in infections that caused sentiment to sour, and today it seems to be a tightening of regulations in China, causing a negative session in Asia, spilling over into Europe at the open.

Data out this morning in Germany showed the IFO Business climate index fall unexpectedly in July, likely on the back of ongoing concerns regarding Covid infections and supply chain constraints on the back of recurring self-isolation periods. The hospitality and tourism sectors fear a fourth wave of infections will ruin the rest of the summer season whilst manufacturers were faced with rising commodity prices, which was hurting profit margins.

DAX 30 Daily chart

DAX 30 Outlook: IFO Business Data Shows Dampening Sentiment

Last week’s rebound has reset oversold conditions on the stochastic oscillator for the DAX 30 which allows for a further pullback to consolidate. The RSI is sitting in the middle of its range so we could see a move in either direction consolidate but the tip is dipping slightly, which suggests further weakness ahead. Last week’s drop saw the RSI at its lowest level since November 2020 but it still wasn’t enough to bring the indicator below the 30 level which would have likely led to a stronger bearish reversal.

The current price is stagnating around the centre-point of its recent range and there seems to be some hesitation to break down lower so we may see stronger support arise again at the 100-DMA (15,453) which is in confluence with the 127.2% Fibonacci extension from the Feb 2020 drop. That said, as long as the DAX 30 stays below its ascending trendline, currently at 15,810, it is at increased risk of a bearish reversal consolidating below 15,000.


The earning’s calendar is running hot this week with key releases from the likes of Apple, Alphabet, McDonald’s, Facebook, and Amazon; as well as the latest policy meeting from the Federal Reserve on Wednesday.

DAX 30 Outlook: IFO Business Data Shows Dampening Sentiment

Earning’s calendar prepared by Margaret Yang.

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.