DAX Index Reverse Early Gains Ahead of Fed

DAX trades cautiously higher ahead of Fed decision later today. Investors are also keeping an eye on ECB decision and the critical elections in the UK tomorrow. Trade negotiations between China and U.S. continiues as we approach the December 15th deadline of imposing new tariffs to Chinese products from USA.

Yesterday the Germany ZEW Survey for Economic Sentiment surprise positively  as  it  came at 10.7 beating expectations of 0 in December, which is the highest level in 21 months. The ZEW Current Situation registered at -19.9, also topping forecasts of -22.3. Germany Exports earlier this week also surprised positive as the figure came in at 1.2%, beating expectations of -0.3% in October.

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Wall Street Finished Lower

In Wall Street the indices ended lower in a quiet session, the Dow Jones index finished 0.10% lower at 27,881; the S&P 500 was 0.11% lower at 3,132 while the Nasdaq ended 0.07% lower at 8,616.

Dax Index Hanging Man Pattern

Dax 30 index adds 0.01% at 13,068 retreating from daily highs as the correction from  five-month highs continues. The index yesterday hit the lowest since October but managed to rebound forming a hanging man pattern suggesting that the buyers are running out of steam.

On the downside, Dax index will meet its first support at 13,042 the daily low. Next support stands at yesterday’s low and the 50-day moving average that provided yesterday the rebound at 12,891. If DAX breaks lower then the next support will be met at 12,475 the 100-day moving average.

On the upside, Dax index first resistance stands at 13,151 the daily high, a break above the daily resistance will open the way for an attempt at 13,335 the high from December 2nd, which guards the year-today highs at 13,375.More content