Dovish Yellen Propels DAX 30 Higher. ADP On Tap.
- The DAX 30 gained 0.83% at the time of writing, as the Fed may be wary of further rate hikes.
- The January 13 high of 10,166 is a short-term resistance level followed by the January 5 high of 10,400.
- The March 10 low of 9397 is the trend defining low.
- German CPI and U.S. ADP are on deck this afternoon.
The DAX 30 (FXCM: GER30) is higher by 0.83% at the time of writing as the Fed’s Yellen hinted on Tuesday that the Fed will be careful when it comes to further rate hikes. External pressures such as softer emerging markets and crude oil prices appear to be playing a bigger role in the Fed’s monetary policy. For details about the speech please see US Dollar Drops Sharply After Yellen’s Dovish Comments.
The underlying DAX 30 trend is bullish above the March 10 low of 9397 and the significance of this low centers on it being the most recent swing low. The trend is bullish as the March 10 low is higher than the preceding swing low of 9122. The February 24 low of 9122 may come into play following a breach of the March 10 low
The January 13 high of 10,166 is a short-term resistance level and it is beyond this point that the January 5 high of 10,400 could be categorized as representing the next level of resistance.
German CPI And U.S. ADP On Tap
Preliminary German Consumer Price Index for March is on deck this afternoon and seen rising by 0.1% YoY. This report is followed by U.S. ADP Employment Change, which is seen rising by 195K according to a Blomberg news poll.
The weekly U.S. Crude Oil Inventories report may also come into focus and a Bloomberg survey shows that analysts expect an inventory build of 3 million barrels.
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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