DAX 30 Bears Attempt a Run on Last Week’s Low
- • The DAX 30 trades just a few points away from last week’s low, which is an important level for the DAX 30 bullish trend.
- This morning, German first-quarter GDP rose by 0.7% QoQ from 0.3%. The outcome was higher than the 0.6% expected by a Bloomberg News poll.
- U.S. Retail Sales and U.S. Michigan Consumer Sentiment are on deck this afternoon.
The uptrend in place since February is back under pressure today as bearish traders are challenging last Friday’s low of 9739.
The 9739 level is important, as it is the most recent swing low in a series of swing lows formed since February 11 when the DAX 30 reached a low of 8697. The next support level below last Friday’s low of 9739 is the April 7 low of 9433, followed by the February 24 low of 9122.
We note that while the bullish trend is under pressure, the trend was at the time of writing, still bullish. Overhead resistance is the May 10 high of 10,111, followed by the April 29 high of 10,254 and the April monthly high of 10,490. In the short-term, some traders may see the DAX 30 as trading sideways between last week’s low and this week’s high.
This morning, German first-quarter GDP rose by 0.7% QoQ from 0.3%. The outcome was higher than the 0.6% expected by a Bloomberg News poll. However, the DAX 30 traders did not use the news as an argument to lift the DAX.
The DAX 30 did, however, rise slightly on the softer than expected Eurozone GDP figures. Eurozone GDP rose by 1.5% YoY vs. the Bloomberg News projection of a 1.6% rise. This afternoon, U.S. Retail Sales and U.S. Michigan Consumer Sentiment are on deck and for more on this please read today’s update by Ilya Spivak, Currency Strategist.
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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