DAX 30 - The Tides Are Turning
- The overall DAX 30 trend is bullish above 10,864 and traders will probably use a pullback in the DAX to add to their long exposure
- U.S. Markit PMI Services, Durable Goods orders and Jobless Claims on Tap this afternoon
Suggested Reading: Aussie Dollar Little Changed After China Consumer Sentiment
DAX 30 traders are keeping an eye on yesterday’s low of 10,864. The short-term trend is bullish above this level and bearish below. I think it’s fair to expect a pullback towards this level in today’s session as traders test how strong this new low is and bullish traders will probably use this pullback to enter long with the market.
In the case that 10,864 does not hold as a support, we may see a decline to 10,750, which is a level that acted as a resistance on Monday of last week.
In the long run the DAX 30 will probably be supported given that much of the data out over the last few days has been bullish. Please see yesterday’s update for more on this.
Data on tap in today’s session which is relevant for DAX traders is U.S. durable goods orders, U.S. Markit Services PMI and jobless claims. We also watch the Fed’s preferred inflation gauge and U.S. personal consumption expenditure. Higher inflation readings may prompt a softer EURUSD, which is DAX bullish.
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Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.