DAX: Holding Steady at Support on Eve of ECB
- Market holding steady ahead of ECB
- Holding channel support on the 2-hour chart
- Looking for a move towards 10900/11000 if support holds
Not a lot has changed since yesterday. So far it has been a quiet week ahead of tomorrow’s ECB meeting. The central bank will announce its rate/QE decision at 11:45 GMT and hold a press conference at 12:30. Expectations are not for the central bank to make any adjustments to rates or its QE program, but there is anticipation the bank may extend its QE program out beyond March 2017. If no surprise moves are made, then the market will be listening for signaling from the ECB president, Mario Draghi, during the press conference. As per usual, expect the unexpected.
Moving onto the chart…
The DAX is holding steady sideways since getting a big boost from the weaker-than-expected US jobs report (diminishing expectations for a Fed rate hike). The channel on the 2-hour time-frame is holding up well as support here. As long as this area continues to hold, then the market should soon be on its way higher testing the August high at 10806 and then up to the 10900/11000 region we have penciled in as a target on further strength. Perhaps the outcome from the ECB will be a favorable catalyst for higher stock prices.
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.