DAX 30 Tests Lower End Of The 9,739-10,111 Range
- The DAX 30 is under pressure and traders are once again testing the lower end of the 9,739-10,111 range.
- We note that while the DAX 30 is under pressure today, the trend remains bullish above the May 6 low of 9,739, as it is the last major low of a bullish trend that has been in place since February.
The DAX 30 (CFD: GER30) was under pressure at the time of writing following a 4.79% slide to the Health Care Sector, followed by Materials and Industrials, both of which were down by 2.10% and 1.56% on the day correspondingly.
A near term support level is the May 6 low of 9739, which is the most recent swing low to the bullish trend in place since February 11, when the DAX reached a low of 8697. The prior low to the May 6 low of 9739 was the April 7 low of 9433, which is also the next major support level. A short-term support level between these major figures of 9433 and 9739 is the April 12 low of 9619, followed by the April 11 low of 9524.
We note that while the DAX 30 is under pressure today, the trend remains bullish above the May 6 low of 9739 and the bullish trend should be respected until it is not bullish any longer, according to classic technical analysis. The last time the DAX 30 tested the May 6 low was on Thursday of last week. Relevant resistance levels are the May 10 high of 10,111, accompanied by the April 29 high of 10,254 and the April monthly high of 10,490.
DAX 30 | CFD: GER30
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
Eurozone Construction Output declined 0.5% YoY in March from 2.5% YoY prior. The DAX 30 traded slightly higher following the report.
The afternoon session provides updates on the Chicago Fed Nat Activity Index, Jobless Claims, the Philadelphia Fed Index and speeches by Fed members, Fisher and Dudley. The speeches may attract the most attention, as both Fisher and Dudley are voters and could confirm or detract from the hawkish FOMC minutes published yesterday evening. The hawkish Fed has left the door open for a June rate hike, a move that is pressuring energy, and commodity related shares worldwide.
--- 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.