As the EUR continues its strength against the USD, this may not be good for unhedged exporters on the Dax30 and future earnings. Yesterday we saw a continuation of the selling, but it has since then retraced. Commodities prices continue to increase, but this has only a minor bearing on the Dax30.
Nonetheless, the PMI Manufacturing numbers from Germany are showing significant expansion. Technically, at this point, the DAX30 is capped at resistance within the POC 12940-12950. However if the price breaks above POC it, we could see the POC2 12995-13028. Pay attention as the price might reject within any of the POC zones. Targets are 12865, 12828 and 12772. To the downside, continuation is possible on a breakout below 12772 towards 12678.
However if the price breaks 13028, this could completely negate the bearish scenario. Targets for the breakout are 13089 and 13163 on a further bullish momentum.
- H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
- W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
- D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
- D L3 – Daily Camarilla Pivot (Daily Support)
- D L4 – Daily H4 Camarilla (Very Strong Daily Support)
- PPR – Progressive Polynomial Channel
- POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
