Good morning traders
FOMC minutes were more dovish and basically suggested it would be unlikely that there would be another hike until at least June. The Fed are unsure of the economic developments, as expected, but analysts are expecting no further hikes until September. The market are pricing in a 50/50 chance of a hike this year.
We have now also reached a crucial level of resistance on the Dax as well and the bearish wave could well continue. Many traders were looking for a pullback to somewhere between 9400-9500 before a resumption of the “risk-off” sentiment. Yesterday we reached my target of 9400 and now we wait for a reaction.
We have reached the .618 fib zone from the January 28 high to the Feb 11 low and this zone is also the underside of the major previous support. Therefore I am personally bearish and will be looking for shorting opportunities. The DaxTrader RSI automatic trader could be useful in situations like these, you would set it up something like this:
- Timeframe: 5 minute chart
- RSI periods: 14
- Levels: 60 20 (Bearish trend)
- Sell the signals
- Profit targets and stop losses are up to you
So if we go back to basics, we are in a bearish trend (overall), AND we are near resistance, we now just need the selling signal to trigger a short. I think we are going to get that today.
Dax Support & Resistance
|200 Day EMA||10358|