DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is very high volatility which gives many trading opportunities.
Session Summary 04.07.2017
Yesterday we had quite a quiet session due to the unresponsive US stock market due to Independence Day. DAX indices slightly recovered last week due to good readings of PMI indices for industry in Germany and throughout the euro area. For Germany it was 59.6 vs forecast 59.3; and for the eurozone 57.4 vs 57.3. Today markets are waiting for the June FOMC protocol and the PMI for services.
Investors are still reflecting on the latest statement by Mario Draghi, who some have suggested is a departure from loose monetary policy, which has prompted strong declines last week. Representatives of the European Central Bank immediately softened the tone of the ECB’s speech saying that it was badly received. On Tuesday afternoon, Peter Praet was saying that the ECB mission has not been achieved yet and that the ECB must be “patient and persistent” because inflation needs more time to reach the target, or around 2% in the medium term.
Today the Nikkei index ended the day with 0.25%. American markets did not work. DAX dropped by 0.31. The German index set a new record around 12951 points. However, he has not been able to stay on this level for too long. Last Thursday and Friday index fell sharply, stopping just around the support area of 12400 points. A descent below this barrier will open the way to 12200 points. The nearest level of resistance is 12600 points. For the time being, the index is above 12400 points.
DAX Intraday
The index broke the pivot point around 12450 points and headed for S1 near 12410 points. Breaking S1 will open the way to S2 at around 12380 points. In turn, a return over pivot point will open the way to resistance R1 at around 12480 points.
Key data for the DAX index
09:55 – German Final Services PMI
10:00 – Eurozone Final Services PMI
11:00 – Eurozone Retail Sales
