Greek Prime Minister Alexis Tsipras met with German Chancellor Angela Merkel in Berlin yesterday but the two only discussed the outline of the reforms without going into depth. Merkel said she wasn’t in a position to promise any more help to Greece – that would be a decision for eurozone finance ministers as a group. But she twice referred back to the February agreement, which Greece has so far failed to fulfill.
Greece repaid more than 900 million euros to the International Monetary Fund last week, but faces another repayment demand of about 470 million euros on April 9. Greece said it will present a package of reforms to its Eurozone partners by next Monday in hope of unlocking aid to help it deal with a cash crunch and avoid default. Government spokesman Gabriel Sakellaridis said : “It will be done at the latest by Monday.”
Markets continued to move sideways yesterday before falling further again this morning, when the European bourses opened. However, what looked like another attack through the 11850 zone in early trading this morning, failed miserably (a key zone as mentioned in my article yesterday http://theshielreport.com/dax-intraday-levels-23rd-march/ ). The DAX lasted a mere 15 mins below the 11840 (bottom end of zone) , failed to push through the key psychological area of 11800 with any force and then spectacularly, catapulted to the upside. The average trading range over the last 22 days for the DAX is 182 pips – the total move in a day. The market this morning moved 153 pips in just under 30 mins!
Looking at the Hourly chart below, one can see price is now back into firm bullish territory. It has once again crossed back over the Hourly 200 MA (green line) after six hours trying to close above.
(click to enlarge)
CONCLUSION – BULLISH
For bulls, price is back above the Hourly 200 MA and it needs to stay that way. It also held against the 200 MA on the 5 minute timeframe (see chart below). With regards to how much further price will go today is debatable. It has already risen 223 pips vs an average of 182 over the last 22 trading days. The more sensible approach would be to wait for pullbacks into the Hourly 200 MA, as this is an easy level to define risk against.
For bears, price has much resistance ahead. The Hourly 200 MA (11940), the 11850 zone, 11800 and then the 11775-11750 zone. Conversely, these can be profit targets for those willing to short from these lofty levels – (12019 as I type).
(click to enlarge)
Bearish targets :-
- 11850
- 11800
- 11775 (Also near Daily S1 Pivot at 11770)
Bullish targets :-
- 12088 (High price last Friday)
- 12159 (Daily R2 Pivot)
- 11222 (all time high)