We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • I wrote the gold technical forecast for this week. The Trump-Powell talk doesn't change the analysis: 'Gold Forecast Supports Measured Swings as Support Breaks Fail to Spark Trend' https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/15/Gold-Forecast-Supports-Measured-Swings-as-Support-Breaks-Fail-to-Spark-Trend.html
  • The Hong Kong Human Rights and Democracy Act is expected to be taken up for a vote in the Senate this week. The bill would require the State Department to certify once a year if Hong Kong should be allowed to keep special status under US Law.
  • RT @CVecchioFX: Similarly, when Greenspan was Fed Chairman, then-Pres Clinton also pressured him to not change policies. So, only differe…
  • RT @CVecchioFX: I was able to read Paul Volcker's memoir "Keeping at It" (https://t.co/TP4jgMHawR) last weekend. Interesting historical ane…
  • It's worth putting this Trump-Powell meeting in context. https://t.co/kJpOZ7yjMt
  • I doubt Powell intends to 'bend the knee' to steady rate cuts - much less negative rates. Nonetheless, market expectations of Fed cuts through 2020 growing ($DXY) https://t.co/JTCvBwt8hZ
  • Me in 2010 vs me now 💪 https://t.co/9m7l5K9H80
  • US Treasury Yields Update: 2-Year: 1.592% 3-Year: 1.593% 5-Year: 1.625% 7-Year: 1.723% 10-Year: 1.805% 30-Year: 2.288% $TNX
  • Trump says meeting with Chair Powell included topics including interest rates, negative rates, USD strength and the impact the USD has on manufacturing and trade with China and EU $EUR $DXY $SPX
  • @CVecchioFX aaaaand right on cue: https://t.co/lqJAm1W5lS
DAX 30 Halts Its Decline, But Strong Gains Are Also Absent

DAX 30 Halts Its Decline, But Strong Gains Are Also Absent

2016-04-07 09:59:00
Alejandro Zambrano, Market Analyst
Share:

Talking Points

  • The decline of the DAX 30 has stalled, but strong gains are absent.
  • The DAX found some support ahead of the March 10 low of 9398.
  • Factors cited to support global stocks, in general, are the higher crude oil prices and yesterday’s dovish Fed rate meeting minutes.
  • The ECB Rate meeting minutes, and the latest U.S. Jobless Claims figures are to be published today. This evening, the Fed's Yellen is set to speak in New York, along with Greenspan, Bernanke, and Volcker.

The DAX 30 (FXCM: GER30) is little changed at the time of writing. The biggest drag to the index is from Carmakers, who are part of the Consumer Discretionary Sector which is currently lower by 1.27% in today’s session. The Health Care Sector, up by 0.74%, is the current winner.

The DAX 30 index itself has been trading with a slight bearish bias over the last few days as the current weekly high of 9906 is lower than the March high of 10,118. The lower highs and lower lows make the trend short-term bearish.

However, the selling has stalled near the March 10 low of 9398, which was also the ECB rate meeting low. The next support level beyond the March 10 low of 9398 is the February 24 low of 9122.

Factors cited to support global stocks, are in general both the higher crude oil prices and yesterday’s dovish Fed rate meeting minutes. In regards to the latter, the Fed has said that the domestic economy has developed in line with their earlier expectations. Employment and wage growth were cited as reasons for the Fed to move forward with the normalization of rates, while Net exports and weak global growth were said to pose a risk to the U.S. economic outlook. Some of the Fed members have said that they are ready to hike rates in April, while others have been less enthusiastic.

The effect of the dovish statement is that U.S. short-term rates, such as the 2-year-swap, remain stable around 0.837% from trading around 1.20% in December. The lower interest rates are said to support stock markets.

The ECB Rate meeting minutes are to be published today along with the latest U.S. Jobless Claims figures. This evening, the Fed's Yellen is set to speak in New York, along with Greenspan, Bernanke, and Volcker.

Our forecasts for Q2 2016 are now live on the site. Download them for free.

DAX 30 | FXCM: GER30

Please add a description for the image.

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.