The most important news of the week influenced markets (as expeted), especially EURUSD and DAX. Interest rates stayed the same, but Mario Sraghi was very dovish during press conference. He said that there was discussion about lowering rates and that some of ECB members wanted to increase QE immediately. He promised that in December ECB will take a look at current form of QE program and he didn’t ruled out increasing it. He said also that euro strengthening is a risk for inflation target. That was quite clear statement that ECB is going to weaken euro.
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Day ended with increases almost everywhere in Europe. All German indices gained: DAX +2.48%, MDAX +2.01%, SDAX +1.09%, TECDAX +0.78%. Out of 30 DAX companies only Lufthansa lost some value (-1.52%), the rest ended day with appreciation. The biggest gains: Vonovia +6.43%, K+S +4.43%, Deutsche Telekom +4.39%, RWE +4.33%, BASF +3.79%.
Technically DAX stopped perfectly on resistance which is top level for two months right now. Situation look even better on DAX FUTURE. Very strong bullish candle broke through all resistances from last two months and reached important resistance – from February and July 2015. If level 10,600 pts will be broken next important resistance is at 11,00 pts. If there will be any random rebound it can be beginning of wave 2.
