DAX 30 May Reach 9478 Over The Next 72 hours
The DAX 30 bounced from the 9078 level, which was in line with yesterday’s outlook. It breached yesterday's high of 9271 today, which was an additional opportunity for bullish traders to enter in line with the short-term trend.
The next resistance level in line and likely profit target for bullish traders, is the February 4 high of 9478. The DAX 30 may reach this level as long as it trades above yesterday’s low of 9078, while a break to this level will turn the index bearish. In this scenario, the DAX 30 may reach Monday’s low of 8948.
Today, a Bloomberg News survey projects a U.S industrial production growth of 0.4% MoM from a negative print of 0.4% in December.
My GDP estimate using Industrial Production as the sole explanatory variable, suggests that U.S. GDP was growing near to 1% YoY in December versus the official reading of 1.8% for the whole fourth quarter.
I am not expecting any major pick up in industrial production at this stage given that the U.S. ISM Manufacturing Index remains below 50, however, in the next few months we may see an uptick as the U.S. Dollar has been relativity stable over the last 12 months, reducing the headwind for the U.S. industrial sector.
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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