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DAX bearish tone prevails - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 20, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - European indexes closed the day deep in the red, tracking Asian shares lower, with the German DAX down by 264 points and ending the day at 9,391.64.

    Germany's index of producer prices for industrial products fell by 1.8% on an annual average in 2015 from the preceding year, down in December by 0.5% according to Destatis, the German federal statistics agency.

    The benchmark fell down to 9,256 intraday, but currently recovered above its daily close, as Wall Street extended its bounce right before the closing bell.

    DAX technical view

    “From a technical point of view, however, a bearish tone prevails given that the index is far below its Tuesday's close, while the technical indicators retain their bearish slopes near oversold levels”, said Valeria Bednarik, chief analyst at FXStreet. “For the shorter term, the 4 hours chart suggests that the ongoing recovery is barely corrective, as the technical indicators remain below their mid-lines, despite heading north, while the 20 SMA caps the upside around 9,600. A recovery beyond this last could see the index staging a stronger corrective movement on Thursday, although it will depend on the ECB's meeting outcome”.

    Support levels: 9,419 9,325 9,256. Resistance levels: 9,599 9,660 9,756.
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