DAX Xetra (cash index)
Uncertainty surrounding the near term outlook for the DAX continues to develop as the market continues to range over the past couple of weeks.
The range between the support range 12,547/12,600 and resistance 12,925/12,950 remained intact yesterday as the market again pulled back from the resistance.
However, despite an intraday rebound from 12,781 closing close to the highs of the session, the market has again opened lower today in the wake of a risk off feel to markets following the Fed decision and ahead of the ECB.
How the market reacts to today’s session could now be key for the near term outlook.
As the early session develops, the market is looking to claw back some of the early losses, but the ECB will be a key mover.
However, if the ECB moves hawkish then there could be a strong euro reaction and the DAX could suffer.
There is little to go on for the daily momentum indicators now with a neutral configuration broadly positioned now.
Essentially, this two week range is becoming ever more important as calling direction over the medium term.
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