DAX 30: Sideways Price Action Is Dominating
- The DAX 30 appears to lack a strong trend.
- Critical levels for the DAX are the March 10 low of 9398 and the March 23 high of 10,118.
- Final German inflation readings were published this morning, and the EU Harmonized reading showed a gain of 0.8% MoM, matching projections in a Bloomberg News survey.
The DAX 30 (FXCM: GER30) was little changed at the time of writing, and the index has not made any substantial attempts to leave the levels seen last week.
The sideways price action occurred despite price trading above last Thursday’s high of 9696 yesterday morning, something which has left the short-term trend less bearish and prone to short-covering by traders.
Looking beyond the near-term price action, the March 10 low of 9398 stands out as a strong support given that price bounced when it approached this level late last week. The next support level beyond the March 10 low of 9398 is the February 24 low of 9123, followed by the February 11 low of 8705.
Strong resistance levels are the March 23 high of 10,118, followed by the January 5 high of 10,400.
We do note that price has been trading sideways between both the March 10 low of 9398 and the March 23 high of 10,118 for more than a month.
The final German inflation readings were published this morning, and the EU Harmonized reading showed a gain of 0.8% MoM, matching projections in a Bloomberg News survey. Year-on-year inflation also rose by 0.1%, matching forecasts in a Bloomberg News survey.
There are no more European macroeconomic reports on tap today. For U.S. session reports on deck, please see our economic calendar.
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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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