DAX 30 Continues Its Retreat
- The DAX 30 maintains a bearish bias, which has been in place since April 21.
- Above the yesterday high of 10,156, the next resistance level is the April 28 high of 10,333, followed by the April 21 high of 10,448.
- A short-term support level is the April 18 low of 9910, followed by the psychological level of 9750.
- The Markit Eurozone Composite PMI remained unchanged at 53 and hints that growth for the second quarter has remained at a similar pace to the growth pace seen over the first few months of 2016.
At the time of writing, the DAX 30 (CFD: GER30) was resting above the April 18 low of 9910. However, the DAX 30 trading below the April 18 low would negate the bullish trend in place since the April 7 low of 9437, as price would not be creating higher lows on a breach to the April 18 low.
Below the April 18 low of 9910, the next potential support level is the psychological level of 9750, followed by the April 12 low of 9617.
The trend is bearish below yesterday’s high of 10,156 as it is the most recent swing high of the bearish trend, which has been in place since price hit a high of 10,448 on April 21.
Above yesterday’s high of 10,156, the next resistance level is the April 28 high of 10,333, followed by the April 21 high of 10,448.
The Markit Eurozone Composite PMI, an economy weighted combination of the Manufacturing, Construction and Services PMI, remained unchanged at 53 and thereby met the 53 expected in a Bloomberg poll. As the 53 reading is not too different to the average of the 53.2 in the first quarter of 2016, the Markit Eurozone Composite PMI is suggesting the Eurozone economy is growing at the same pace as the first quarter. Eurozone GDP increased by 0.6% QoQ in the first quarter.
This afternoon key U.S. data reports are on deck: the ADP Employment Change and April’s ISM Non-Manufacturing Composite. Please read today’s market update by Ilya Spivak, Currency Strategist, for more on today’s U.S. economic reports.
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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