DAX 30 Eyes 9400 And Trend Is Bearish Below 9678
The continued slide in crude oil prices (FXCM: USOIL) did indeed trigger a break to the DAX 30’s lower limit of 9563 and this has opened the door for a decline to the psychological level of 9500 and 9400, as highlighted yesterday. The DAX has now reached that first target and may still reach 9400 as long as it trades below 9678, which is an intraday high from yesterday.
Traders will most likely use a pullback to the breakout level of 9563 to add to their bearish exposure.
Data pieces on tap in today’s session areU.S. ADP and ISM Services. The former is expected to decline to 193K from 257K according to a Bloomberg News survey, while the latter is expected to soften to 55.1 from 55.3. Very strong figures are needed to stave-off the current decline in the DAX 30.
Data overnight and today,which should have boosted the DAX 30, but did not, was Caixin China PMI Services rising to 52.4 from 50.2 and Japan PMI Services rising to 52.4 from 51.5. On the negative side, German PMI Services declined to 55 from 55.4 (yet this reading remains strong overall).
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DAX 30 | FXCM: 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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