The DAX is somewhat languishing in trading today as traders and investors alike wait for any news out of Europe over Greece. Documentation with proposals for Greece’s EU/IMF creditors was submitted on Monday to EU Commissioner Pierre Moscovici – Athens is still awaiting a response.
Conversely, more investors have cut back their positions of German Bunds amid the volatility pushing price lower and yields higher. The yield on the German 10 Year Bund crossed 1% for the first time since last September, as signs of the ECB’s massive €1.1 Trillion bond-buying program start to bear fruit and ward off the threat of deflation – see full article here
Looking at an Hourly chart of the DAX below, one can see price continued to push lower in yesterday’s trading, only to find support into the 10892/10856 zone – see yesterday’s article for more details. In trading today, price is holding steady around the 11018/10986 off the mixed investor sentiment present in the marketplace.
(click to enlarge)
CONCLUSION – NEUTRAL
The bias is bearish below the Hourly 100 moving average (blue line in the chart above), and bullish above the Hourly 200 MA (green line).
For bulls, price needs to try and hold onto the 11018/10986 zone in trading today, but will face resistance coming into the Hourly 100 MA on any advance higher. The line in the sand for intraday bulls is 10986. Risk averse traders will be defining their risk and entering into the market on breaks above the Hourly 200 MA.
For bears, price needs to get back below the 10986 zone, with the line in the sand intraday being the Hourly 100 MA. Risk averse traders can define their risk either on pullbacks into the Hourly 100MA or on a break of 10856.
Bearish targets :-
- 10892 (Key zone)
- 10832 (Extension of Daily range – 22 day avg. 219 pips)
- 10800
Bullish targets :-
- Hourly 100 MA
- 11157 (Extension of Daily range)
- 11176 (Daily R2 Pivot + into Key 11193/11174 zone