Welcome to the DAX Market Summary. The German stock market was expected to start weaker on Thursday morning after the US Federal Reserve’s interest rate decision. Banks and brokers expect the Dax to open down 0.3 percent lower. On Wednesday, the index gained very little and has formed a Doji on the daily chart. The prospect of a faster rate hike by the Fed pushed the US stock markets down yesterday wiping out earlier gains.


DAX Market Summary – FOMC Dominates Headlines

The Fed announced that there may be two more interest rate moves in the current year. The expectations were for a rise yesterday and the US monetary authorities obliged by raising the key rate by 25 basis points to 2.0 percent. A further increase in interest rates by the central bankers yesterday evening was a foregone conclusion to many analysts. For the investors, it is just a question of hearing the statements of the central bank to understand whether this year only one or two further interest rate increases will happen. According to new interest rate forecasts of the members of the Monetary Policy Committee, a total of four rate hikes are expected this year (two more in likely September and December). However higher interest rates may make equities look worse in comparison to bonds.

DAX Market Summary – ECB Up Next

Investors are now looking forward to the ECB during the course of the day. Economists expect the ECB to signal an end to the bond purchases that have been underway since spring 2015. The key interest rate, which is currently at zero percent, probably will not change. Economists expect interest rate increases from mid-2019 at the earliest. The Fed has managed to get inflation and the job market where it wants them. In contrast, the ECB still has a lot of work to do. The US economy is growing twice as fast as the eurozone at the moment.

On the corporate side, the focus should once again be on the Volkswagen share. The prosecutor Braunschweig has fined the group over one billion euros in the wake of the diesel scandal.

14-06-2018 DAX Market Summary Technical Analysis

DAX Market Summary

The DAX could not decide on a direction on Wednesday.

Bulls are concerned that price has not managed to break above the 12950 high. The concern comes from a potential failure to continue the series of higher highs and higher lows. When the market placed the low yesterday around 12775, the expectation was for the Dax to go ahead and take out 12950. But it did not succeed. At this moment in time, as I write this article, it is difficult to see the DAX continue the major uptrend.

We remain bullish above 12750 in the short term and above 12600 as a final line in the sand. However, the eyes are on this LMLH to see whether or not this fork is about to be breached. We are thinking that the downside could begin after the expiries at the end of this week and perhaps today will be quiet as ECB looms. That’s the DAX Market Summary.

FTSE

  • Unchanged – trapped in a large (but narrowing) range
  • Watch 7638 and 7760 for breaks of the narrowing range
  • Range-trading strategies like our BBRSI could work well in these conditions

DOW

  • FOMC have put pressure on the recent gains and the DOW threatens the start of a retracement cycle.
  • The small black MPL break signalled a move lower and the reaction line on the ACR line-set was hit.
  • Short term bullish above 25069, so if that goes, the major trend is also under threat.

DAX Market Summary Key Levels and Pivots

14-06-2018 Dax Key Levels

Develop Your Trading Business

In addition to providing regular daily DAX Market Summary, theDaxTrader.co.uk provides top quality DAX Analysis articles every day cover various topics of technical analysis from technical indicators to naked price action. We study market geometry and share our outlooks. If you want to learn more about how we trade, you can become a member today and get access to our DAX trading strategy. We trade the strategy every day and this is where we generate our DAX signals. So come and learn the strategy for yourself.

Perhaps you want to learn how to become a signal provider for yourself? If so, learn about how to send signals from Metatrader 4 to Telegram. We have produced an excellent piece of software will help you do exactly that. To learn more about the DAX, visit the Wikipedia page, you will find we are mentioned there.