Data out of Germany this morning showed better than expected growth in Retail Sales for Europe’s largest economy. It rose 1.7% last month versus expecations of 0.8% growth. The decline in March’s number was also revised higher from a 2.3% decline to a 1.4% drop. – see full article here
However, the impact of this positive data was short lived as European equities are taking a hit in trading today with the DAX down from the 11700’s to the 11500’s. Investors are more dubious with their concerns being stoked over the ability of Greece to reach a deal with its Eurozone partners by Monday. – see article here
Looking at an Hourly chart of the DAX below, one can see price failed to break up through the Hourly 100 moving average (blue line in the chart below) with any success in yesterday’s trading session. The 11776/11751 zone continues to dominate over the bulls’ attempts to move higher. In trading today, price has breached the 11606/11595 zone, which was a strong support for bulls since the 18th May.
(click to enlarge)
CONCLUSION – BEARISH
The price is well below its Hourly 200 MA (green line in the chart above) and below its Hourly 100 MA. However, for these reasons expect to see some bounce today with traders possibly wanting to test the strength of these levels.
For bulls, value investors will be buying dips into the 11467/11457 zone and the 11328/11316 zone. Risk averse traders will be buying on a break of the 11776 level.
For bears, shorting opportunities reside on retracements into the Hourly 100 & 200 MA’s and the aforementioned 11776/11751 zone. Alternatively, opportunities with risk being defined, reside on a break of today’s low of 11507.
Bearish targets :-
- 11482 (Extension in Daily range – 22 day avg. 230 pips)
- 11467/11457 zone
- 11436 (Daily S3 Pivot)
Bullish targets :-
- 11695 (Daily Pivot)
- Hourly 100 MA
- 11751 (Key zone)