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The global data calendar is quiet today. We get the monthly GDP monthly estimate in the UK for March and Euro area industrial production for March. We are likely to see a sharp decline in Euro area production, probably more than 10%. Last week, the market began pricing in a small probability that the US Fed funds rate would go negative later in 2020.
Yesterday Donald Trump called for negative US rates, but so far the Fed has been rejected any calls for negative rates. Powell made it clear in March when rates were slashed to zero that the costs of negative rates are higher than the benefits. Yesterday, Fed’s Bullard pointed out the mixed track-record of negative rates. They are bad news! Not only are the US printing an entire economy worth of additional currency and devaluing the current supply of currency, but they also want to introduce an additional tax of negative rates?! The economic world is beginning to dismantle.
DAX 30 Review From Last Session
During the last session, we saw the DAX 30 get to a session high of 10889 and a session low of 10670 giving us a range of 219 points compared to the average daily range of 266. At the close of play yesterday, we closed at 10670 which was 1111 points below the 200EMA and 106 points below the 50EMA.
DAX Levels To Watch
Moving on to the key levels to watch today, watch out for the previous session Point of Control (POC) at 10834. Today’s initial balance is between 10623 and 10696, so watch for a momentum break of either of those two levels. The value area high is currently 10880 and the value area low is currently 10804. Here are some more levels to watch out for:
- The 5 EMA (Daily): 10714
- The 8 EMA (Daily): 10712
- The 50 EMA (Daily): 10776
- The 200 EMA (Daily): 11781
DAX Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 54 |
| Stochastic | K: 26 and D: 35 |
| MACD OSMA | 7 |
| Point of Control (POC) | 10834 |
| Value Area High (VAH) | 10880 |
| Value Area Low (VAL) | 10804 |
| The DAX Pivot | 10743 |
| The DAX R2 | 10962 |
| The DAX S2 | 10524 |
