The DAX crept higher in yesterday’s trading session, slowly edging towards Friday’s high after the positive U.S. Employment report. Bulls would have been looking at the 11600 area to be taken out with force and for price to close above. However, price clung onto the 11600 handle for 20 minutes before eventually collapsing lower.
In London trading this morning, price made another attempt towards the 11600 area after the EUR/USD broke it’s key 1.08 level. The lowest price for the EUR/USD in 11 years. This helps boosts sales for European companies due to an increase in exports as a result of a weaker Euro. This should have been more than enough impetus to drive the DAX back up and through the 11600 level. But alas, this did not happen.
Looking at the 5 minute chart below, one can see that price failed to reach the 11600 level. It touched into it’s 200 moving average (green line in the chart below) at 11572 and drifted lower. Price has continued its downward momentum in trading today.
(click to enlarge)
CONCLUSION – BEARISH
Price has so far hit a low today of 11493, bouncing off it’s S1 Pivot. Looking at the Hourly chart, it’s easy to see where key support lies beyond that.
The 11460 has been a key point of control since the beginning of March, either acting as a ceiling of resistance or a floor of support. Price will now need to move through the Hourly 100 moving average (blue line in the chart below) and key area of support at 11467(wed high) / 11460 to keep the bears in charge.
(click to enlarge)
Bearish targets :-
- 11460
- 11428 (extension of todays trading range [152 avg. last 22 days])
- 11403 (Daily S2 Pivot)
Bullish targets :-
- 11606
- 11643 (extension of todays trading range + also just above Daily R2 Pivot of 11639)
- 11700