All sectors of the DAX 30 are lower today. The biggest losses can be found in the Utilities sector (e.g. E.ON), followed by Consumer, Cyclicals (e.g. Continental). The trigger for a lower DAX 30 are commodity prices, as an example crude oil slid to a new multi-year low.
From a technical point of view I will treat the DAX 30 as bearish below the psychological level of 10,000 (yesterday’s high is at 9,944). The trend is bearish as yesterday’s high of 9,944 is lower than this week’s high of 10,163, also price created a new weekly low in yesterday’s session. I expect price to reach the psychological level of 9500 (a level highlighted over the last few days).
Bearish traders not already short will most likely wait for a pullback to the range of 9800 to 9942 to enter short. They do this as the risk/reward ratio favours short positions in this zone. A break to yesterday’s low at 9,966 is expected to trigger an acceleration of the bearish trend.
There are several data releases, which may limit or boost the slide of the DAX 30.
Focus will be placed on Industrial Production as it’s this sector which is soft in the U.S. economy, while U.S Retail Sales is where we find its strength. U.S. PPI is interesting as it show if the Fed needs to ramp up rate hike expectations or temper them. Other data like Michigan Consumer Confidence are also on deck. See our economic calendar.
Losing Money Trading? This Might Be Why
DAX 30 | FXCM: GER30
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
Get Alejandro’s daily market update in your inbox, please fill out this form
original source
