Session Summary 29.05.2017
Yesterday, we had a quiet day on markets due to the day off in the UK, USA and China. Today we will see data on inflation in Germany, the US PCE, which measures inflation over the ocean. Euro zone inflation will be released on Wednesday. Euro zone data will be observed due to possible impact on next ECB meeting which will be held on June 8th. There are speculations that bank may suggest normalization of monetary policy in near future. Announcement of end of the QE program, information on raising the cost of money in Euroland after the bond purchase program, etc.
DAX index gained 0.08% yesterday and is still above 12600 points, which is a bullish signal and next level is the historical high at around 12800 points. On daily chart occurred a hammer formation which perfectly stopped market at 12600 points.
DAX index rebounded from S1 level at around 12580 points and headed north than broke level of 12600 points and moved in direction of R1 near 12650 points. This is a strong demand signal.
14:00 – Consumer inflation, ad. in Germany