Good morning traders
Yesterday was quite subdued on the German market, we created a low early on in the session down at 10545 and traded sideways for the majority of the morning. We broke that low in the early afternoon before closing there at the end of the day. FOMC minutes was the major event in the evening session, as traders were looking to see how old the Fed members positions are in respect to A rate hike in December. Low inflation remains under intense scrutiny and there is still a 70% chance of a hike according to said watch futures. Several voting members noted that it was a close call as to whether to hike in September. But the committee is still divided, so the speculation shall continue.
We opened much lower today, and have now broken the 10465 support, which is potentially quite significant. China has reemerged to take some of the attention away from FOMC. It has painted the picture that global demand remains slow this has weighed heavily on equities. The SnP500 is trading near the 15/9 lows so the Dax equivalent would be close to 10350.
The daily candle is heavily bearish today after breaking support at 10 465. Price is currently trading around 10 415 and I am looking for it to retrace back to the 10465 level.
On the H4 chart, there is still no direction of trend and it still looks sideways, but breaking currently.
The H1 chart shows that we have approached the next layer of support at 10350. Price bounced from this level and I would like to see a decline down to 10260.
The 30 minute chart has a Fibonacci retracement pulled from the top of the move this morning to the low of the day which offers targets between 10450 and 10475 for a pullback.
On the m5 chart looking at the daily pivot levels we are below the daily S2, the low of the day was just above the S3, Price doesn’t often tend to trade much lower than these levels in a day.
Be aware that if price breaks above 10 465 it could find its way back up to 10 500 as it hunts stops and reaches the low of yesterday, so be patient looking for an entry.
Dax Support & Resistance
|200 Day EMA||10257|