DAX 30 Treads Carefully Ahead of Today’s ECB Rate Decision
- DAX 30 is short-term bullish above yesterday’s low of 10,283, while the psychological level of 10,500 is capping price.
- DAX 30 treads carefully ahead of today’s ECB rate decision.
The DAX 30 (CFD: GER30) had maintained its short-term bullish trend at the time of writing. In today’s session, the Utility Sector (comprising energy producers) was up by 1.28%, having surpassed all other sectors. The Telecommunications Sector was down by 0.47% and is today’s loser.
The motivation behind the rise of energy producers could well be down to the fact that Brent Crude oil prices have risen to a new 2016 high over the last 24 hours. The boost to crude oil prices took off exactly as DOE U.S. crude oil inventory build proved to be smaller than analyst’s expectations. The crude oil build was 2.08 million Barrels vs. a Thomson Reuters survey projecting a rise of 2.75 million barrels.
Yesterday’s low of 10,283 is the short-term trend defining level and the trend is bullish given that yesterday’s low is higher than Monday’s low of 9906.
A potential support level below yesterday’s low of 10,283 is the April 14 high of 10,108 followed by Monday’s low of 9906.
The psychological level of 10,500 is acting as a resistance level and price reversed near to this point earlier this morning. Beyond the 10,500 high, the next potential resistance level is the January 3 closing level of 10,692, followed by the December 30 high of 10,880.
At today’s ECB Rate Decision, market-participants are not pricing in the need for the ECB to deliver a policy change. However, the focus will be on guidance as to future easing potential. Stock markets participants usually welcome low interest rates and other tools used to keep rates low, as it helps firms and consumers to keep their financing costs low.
DAX 30 | CFD: 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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