Dax focused before German IFO data. EUR/USD steadies, German elections this weekend.
Dax focused before German IFO data
The Dax is pointing to a mildly softer start, whilst European peers are set to open mixed because the bounce from the Fed fades and investors remain jittery over the fate of China’s debt ridden Evergrande.
German IFO economic sentiment data is due later today. Both the business climate and expectations components are expected to tick higher. the present assessment is predicted to tick to from 101.4 to 100.8.
Looking ahead Germany heads to the polls this weekend for the primary national elections without Angela Merkel in 16 years.
Angela Merkel has been a key figure of stability, attracting business and investment. Where next for the Dax?
The Dax rebounded from a coffee of 15000 and rallied for 3straight session taking the worth back above the 100sma and briefly above the 50sma on the daily chart. Whilst the RSI is neutral, the meteor candle points to a bearish reversal.
Immediate support are often seen at the 100 sma 15610. an opportunity below this level could see the index head towards 15450 the low September 9 before bringing 15285 live the June low.
On the upside, an in depth above the 50 sma is required to convince the buyers of further upside and aim towards 15800 last week’s high. EUR/USD steadies, German elections this weekend
The Euro shrugged off yesterday’s weaker than expected PMI data, as supply bottle neck hit production. Meanwhile the US Dollar came struggling after the Fed pushed back on tapering bonds until later within the year.
Today the greenback is bouncing back amid a cautious mood within the market. Fed Powell is thanks to speak later and German IFO data is eyed. Where next for EUR/USD?
EUR/USD trades during a downward trend since the beginning of the month. Whilst oversold conditions helped the pair rebound off a monthly low, momentum has slowed. The RSI on the 4 hour chart is neutral.
To extend the move higher EUR/USD got to break above the 50 sma on the 4 hour chart at 1.1750 this might see the buyers gain traction. Beyond here 1.1770 the upper band of the descending channel comes into play before the 100 sma at 1.1800.
On the downside, support are often seen at 1.1700 the round number and September 20 low. an opportunity below €1.1682 could see the sellers gain traction.