Good morning traders.

The main news at the moment once more comes from the US. The US Senate is believed to be moving to a vote on the $1.3 trillion spending bill. The bill needs to go through the Senate to avoid another shutdown. Troubleshoot tariff exemptions for the EU Australia Korea, Brazil and I believe Argentina. But the gloves are off regarding China. Trump will impose tariffs on China, however, the commerce minister in China says it resolutely opposes them and will defend its interests.

What is it with American president wanting to declare war?

It’s almost like part of the selection process. I am very pleased that I do not live over there.

Economic Calendar

As far as the economic calendar goes, today the EU leaders summit goes on all day. We have Canadian retail sales numbers around lunchtime including court CPI. There is core durable goods orders and new home sales later. So be sure to keep an eye on the calendar.

23-03-2018 Dax Analysis

We have three points to connect an overhead train line which will help us decide whether to engage in a push trade. I did not reach the targets in this morning which was somewhere between 12,013 and 12,053. Most of this morning’s gains have now been taken out.

The bearish trend will continue, providing we can take out 11,912.

Since breaking out of the most recent wedge, which found highs around 12,475, we have started to trade in a large range.

If we take a line from the low after the break of the wedge, and connect it to the next low, marked with a number ‘1’, we have a centre line. We can use this centre line as part of an action Centre reaction line set. We can use ACR line sets to forecast reaction points, or profit targets.

So at the moment, I am considering whether 11850-11,900 is the target for this move.

We have now broken below the lower median line parallel of this fork. We have broken below 11,974, with the next major low at 11,731.

11,731 is a load that must be taken out if this bearish trend is to continue.