Good morning traders!
Ahead of a meeting in Berlin, the Canadian PM and German Chancellor have agreed a trade deal, the two leaders with the most liberal values on immigration and trade can consider this a major political victory, although CETA is far from perfect. It can be considered a victory especially is it’s a middle finger to Donald Trump and also when considering the political risks that sit on the horizon regarding France, more specifically the growing popularity of Le Pen, who would sit on the opposite side of the spectrum of these two leaders. It’s a Euro-Canadian victory.
In other news: Greece is back on the radar, the crisis that was so narrowly avoided in 2015 was only ever really swept under the carpet, but the resulting bumps are causing people to trip again. “People demanding the return of the Drachma should travel to North Korea” that is the kind of burn that a 17 year-old keyboard warrior would post on Twitter. But no, this time it was Yannis Stournaras, Governor, Bank of Greece who said it. I may have quoted him out of context, but still, a little more tact needed perhaps? What a ridiculous thing to say.
Come and Join DaxTrader54 On Telegram
Come and join my broadcast channel on Telegram messenger, it’s here that I broadcast additional Dax analysis and messages to my readers and subscribers. For the rest of the month, it is very easy to get access, please download the Telegram messenger (from www.telegram.org) and then click this link: https://t.me/joinchat/AAAAAEAypsW3Xet_6ngBlw
My DaxTrader trading algorithm is currently neutral.
Dax Daily Chart
We printed a doji just under previous resistance on the daily chart yesterday and as I write this article now, price has found 11766, suggesting that we are bearish below the high from yesterday (11848). The SPX and other US indices are overdue a correction, so if they begin that phase, it will be tricky for the Dax to diverge. Keep an eye out on those markets.
Dax Hourly Chart
We are in the middle of two fairly key levels, marked out as horizontal lines (black) on this hourly chart. 11710-11725 is a zone that could attract some buying attention, assuming that we are not in a corrective phase. But potentially we could also find the market rangebound. My algorithm is currently neutral at the moment suggesting we are ranging.
Dax 5m Chart
Price has changed pretty quickly since I printed this chart. We are now testing the 50 hour moving average after having broken below the daily pivot and trading around 11770. If Gold continues to rally and SPX breaks support, then the low of yesterday is in sight and that 11710 support will be interesting to watch, especially if you want to buy.
Dax Support & Resistance
|200 Day EMA||10845|