DAX is one of the most popular indexes in the world. It is listed on the Frankfurt Stock Exchange. Virtually every day there is a very high volatility which gives many trading opportunities.


Session Summary 25.05.2017

Once again it turned out that data can be interpreted differently depending on the climate that prevails on markets. In United States S&P 500 has set new historic maxima, as the protocol of the last FOMC meeting was considered as dovish. Let us recall that from minutes of Fed we learned that if US economic data are in line with expectations, further steps should be taken to tighten monetary policy. June increase on basis of futures contracts for federal funds is estimated at nearly 90%. FOMC also announced that it intends to set a monthly limit on securities from which funds will not be reinvested in the balance sheet in order to normalize the balance sheet total.

Investors, however, liked the information that all measures to normalize monetary policy were conditional on good macro data. Is that monetary policy not always depend on economic data? Well, euphoria continues. The S P 500 gained 0.44% yesterday.

Absolutely different was mood on oil market, although OPEC extended its production cut by another 9 months. Yesterday WTI crude slumped almost 2% to $ 48 a barrel. This situation can be explained in one way, buy rumours, sell facts. Europe tried to find itself in this chaos and we saw quite a lot of variability on DAX index.

Finally, index landed slightly below the line with -0.17%. The index is still above 12600 points, which is a bullish signal and the next level is historical high at around 12800 points. However, the fall below 12600 points will open the way to support near 12400 points.

DAX Intraday

The index balances at 12600 points. Exit over pivot point around 12620 pts. will open the way to the R1 resistance near 12700 points. In turn, descent below 12600 points can provoke move towards S1 support around 12550 points.

Key data for the DAX index

14:30 – Gross Domestic Product, rev. in USA

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