The DAX 30 Under Pressure, May Trigger Stops Below Its Weekly Low
The DAX 30 is under pressure as it searches support at this week’s low. The recent slide in global stock markets follows a strong build up in gasoline inventories, see our FTSE 100 report for details. This has in turn triggered a slide in crude oil and gasoline prices as traders are beginning to view the build in inventories as a sign of a soft U.S. economy.
If the DAX 30 breaks our key level at 9726 it may reach the next support level which is the psychological level of 9500. Beyond this level, we find the October 2 low at 9396. At this point, the DAX must break yesterday’s high of 10,170 to elevate the pressure from bearish traders.
Data and macro news to watch today are the ECB rate minutes at 12:30 GMT. Alongside this, although a bit farfetched right now, we will also look for insights about more ECB QE. Signs of more QE on tap may partially neutralise the bearish sentiment sweeping global markets. U.S Jobless claims are on tap at 13:30 GMT and a Bloomberg survey projects that there will be a decline to 275K from 277k. A strong reading is unlikely to limit a slide in the DAX.
Don’t Be Left Behind, Learn What FXCM’s Most Successful Traders Do on a Consistent Basis, sign up for our free guide here.
DAX 30 | FXCM: GER30
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
Struggling with Trading? Join a London Seminar
Get Alejandro’s daily market update in your inbox, please fill out this form
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.