- The DAX 30 is bullish above the January 26 low of 9563 and traders may lift the index to 10,165
- A dovish ECB and Fed are capping interest rates, which is needed if the economy is to bounce back.
- Today: U.S. Durable Goods Orders and Initial Jobless Claims
Losing Money Trading? This Might Be Why
The DAX 30 may reach the January 13 high of 10,165 as long as it trades above the January 26 low of 9563. Traders will probably add to their long exposure on a corrective move to the support range of 9639 to 9753. An alternative entry is a break to the January 14 high of 9945. A break to this level would also accelerate the uptrend as its fair to expect there is a layer of buy orders and stop loss order above 9945.
Data pieces to watch today are U.S. Durable Goods Orders and Initial Jobless Claims. A Bloomberg News survey projects an outcome of -0.7% MoM and 281K respectively. My base case is that better than expected data will lift the DAX 30.
The DAX is bullish as the ECB last week hinted at more QE and yesterday the Fed voiced concerns about the global economy. This suggests Fed rate hikes will be gradual and it is keeping a lid on U.S. interest rates, a needed move if the economy is to bounce back.
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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
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