DAX Unchanged as Market Struggles to Find Direction
DAX trades almost unchanged midday after Germany Unemployment Rate s.a. matched forecasts of 5% in September, the Unemployment Change came in at -10K, below expectations of 4K in September. European Monetary Union Unemployment Rate came in at 7.4% below forecasts of 7.5% in August. Another chapter in trade war started after news that US looking for delisting Chinese stocks from US stock exchanges and limiting direct investments in China from government pension funds.
ECB, cut its deposit interest rate at -0.50% and launched a new round of monthly bond purchases. The German main stock index has gained over 10% since the August lows and 17% in 2019.
DAX positive momentum from August 15th lows (11,275) is intact as the index hovers close to six-week highs and above all major daily moving averages. On the upside, the immediate resistance is at 12,411 today’s high and then at 12,592 the high from July 25th, a convincing break above might drive prices to yearly highs at 12,653. Bulls will gain momentum if Dax Index returns inside the ascending channel which started back in December 2018.
On the flipside, immediate support for DAX index stands at 12,346 today’s low, while sellers looking for a break below 12,126 the 100-day moving average in order to regain control for the short term and continue the downward move to 12,044 the 200-day moving average.
In London the FTSE 100 gives up 0.28% at 7,405, as the pound regains 1.23, CAC 40 is 0.01% lower at 5,639. In Wall Street, Dow Jones futures are 0.25 per cent higher at 26,862, the S&P is 0.29 per cent higher at 2,972 while Nasdaq is 0.40% higher at 7,731.Download our latest quarterly market outlookfor our longer-term trade ideas.
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