DAX 30 Remains Unchanged Despite Soft China Industrial Production
The DAX 30 is more or less unchanged this London morning and is ignoring the softer than expected Chinese industrial production published overnight. Industrial production increased by 5.6% YoY vs. the 5.8% expected according to a Bloomberg News survey. The year-on-year is as soft as it was in March 2015 which is also the weakest level since 2008. On the other hand, Chinese Retail sales accelerated with 11% YoY and the YoY growth has been increasing since April 2015.
The German DAX index is short-term bullish above 10,730 and as long price trades above this level the trend will remain bullish. We expect price to drift higher and potentiality reach the 11 000 later this week.
If the DAX 30 breaks below 10,730, we may see a steeper pullback taking the DAX 30 to 10,472 which is a 50% correction to the 9884 – 11,057 rally. Please see the chart below.
There are no risk events on tap this session and trading will be dominated by flows and technical trading.
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.