I am going to be out of the office this morning, so there will be no time for a video today. The trading signals will continue as normal because the team will be working here, continuing to trade the strategies.
The DAx has been forming a descending wedge, at the lower median line parallel (LMLH) of the upsloping fork that you can see on the hourly chart. Yesterday we saw a break below the the LMLH, but remain within the descending wedge support line. I'd like to see 12232 get a visit, as this is an exposed POC from yesterday's price action. But if price continues to head to the downside, and we break the potential areas of support (visible on the profile from last Tuesday), then we can open the door to 12,000 and 11,934 again.
European stocks traded lower in Wednesday's premarket session as investors focus on the escalating tensions between the United States and Iran. A day after Washington imposed new sanctions against Tehran, US President Donald Trump warned that an Iranian attack on "anything American" would be "met with great and overwhelming force." At the same time, Iranian President Hassan Rouhani stressed that his country does not want a war with the US, but is ready to give a "decisive response to aggression." Elsewhere, market watchers were digesting yesterday's remarks by Federal Reserve chairman Jerome Powell in which he tempered expectations about a future interest rate cut and warned about caving in to "short-term political interests."
The main event on economic calendar for today is the BoE (Bank of England) speech and the inflation report. We've already had the GfK numbers this morning.
Confidence among consumers in Germany declined for a second time in a row heading into July, according to the latest release by GfK on Tuesday, with the main reason for the sentiment drop was a noticeable decline in income expectations. However, the market research institute stated the propensity to buy was increasing again while economic expectations have ended their decline. "Domestic demand nevertheless remains an important pillar of the German economy. In order for this to remain the case, the uncertainty surrounding job security, which has also grown due to the trade conflict with the USA, must be counteracted as quickly as possible. If this does not work out in the eyes of the employees, it would put even more pressure on the consumer climate. Also, the GfK consumption forecast of 1.5 percent for this year would certainly not be maintained."