News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
DAX 30 To Regain Yesterday’s Losses?

DAX 30 To Regain Yesterday’s Losses?

Alejandro Zambrano, Market Analyst

Talking Points

  • The DAX 30 maintains a bullish bias above last week’s low of 9397.
  • We keep an eye on European bank shares as financials weigh heavy on the DAX.
  • Volatility in the DAX may pick up this afternoon, following the publication of the University of Michigan Confidence report.

The DAX 30 is slightly lower in relation to this week’s high of 10.068, but it keeps its bullish bias since mid-February. The overall trend is bullish above the ECB rate meeting low of 9397.

We note that Financials have been weighing on the DAX 30 and we will be keeping an eye on the shares of European banks such as Deutsche bank, HSBC, and BNP Paribas. These shares have traded lower in the aftermath of last week’s ECB rate cuts. Should the bank shares resume their bearish trend, then this may hint at a weaker DAX 30.

For now though, the trend is buoyant above last week’s low of 9397 and price might reach the January 13 high of 10,166, followed by the January 5 high of 10,395.

As highlighted yesterday, the pullback in the DAX may, in the current environment of easy monetary policy by central banks, be perceived as an opportunity to add to long positions.

Should the DAX slide below last Thursday’s low of 9397 however, then the trend may turn bearish and reach the February 24 low of 9122, followed by the February 11 low of 8705.

Volatility in the DAX may pick up this afternoon, as the University of Michigan Confidence report is published and on speeches by Fed's Dudley and Rosengren. The day concludes with the Baker Hughes U.S. Rig Count. See our economic calendar.

Download the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold

DAX 30 | FXCM: GER30

Please add a description for the image.

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

Struggling with Trading? Join a London Seminar

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES