Good morning traders. Today is rather thin in terms of economic data releases. The focus remains COVID-19 developments and how the economies are doing now they have started to reopen, riots in US, US-China tensions, ongoing Brexit negotiations. The ECB is set to publish details on the allocation of its PEPP programme and focus will be on the potential skew towards Italian and French government bond holdings.
British and EU negotiators will begin their final scheduled round of Brexit trade talks. EU demands of level playing field conditions remain the major hurdle and no breakthrough is expected ahead of the important deadline on 1 July.
President Trump not only withdrew US support from the WHO, but also vaguely announced he would revoke special trade privileges for Hong Kong in response to the newly installed Chinese security laws.
Equity markets mostly shrugged off the China-US trade tensions yesterday and the phase-1 deal still remains. But Trump’s decision to deploy the military is stoking further social unrest in the US.
While the world economy is in the deepest economic recession since the Great Depression, many think is will be short-lived as economies open up, I believe we will start to see an increase in inflation. High-frequency data support the view that the advanced economies are recovering, as the virus comes under control and economies start to reopen.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 tag a session high of 11942 and a session low of 11652 giving us a range of 290 points compared to the average daily range of 260. At the close of play yesterday, we closed at 11934 which was 979 points above the 200EMA and 979 points above the 50EMA.
DAX 30 Index Key Levels
Moving over to the key levels to watch today, watch out for the previous session Point of Control (POC) at 11870. Today’s initial balance is between 11852 and 11956, so watch for a momentum break of either of those two levels. The value area high is currently 11928 and the value area low is currently 11737.Here are some more levels to watch out for:
- The 5 EMA (Daily): 11766
- The 8 EMA (Daily): 11630
- The 50 EMA (Daily): 10955
- The 200 EMA (Daily): 10955
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 82 |
| Stochastic | K: 97 and D: 94 |
| MACD OSMA | 87 |
| Point of Control (POC) | 11870 |
| Value Area High (VAH) | 11928 |
| Value Area Low (VAL) | 11737 |
| The DAX Pivot | 11843 |
| The DAX R2 | 12133 |
| The DAX S2 | 11553 |
Dax Trading Strategy & DAX Signals
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