DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The market has found support as the recent slip back within the range has found buyers at 12,634.
This was marginally below the pivot range 12,666/12,709 but the reaction today suggests there is a bullish bias still within the range that will tempt the bulls to buy into weakness.
Ahead of key risk events the market is still positively configured.
On a medium term basis the momentum indicators are still straddling the fence, with the RSI bottoming above 50, but the MACD lines and Stochastics are still finely balanced.
- As long as the support at 12,634 now holds, the market still retains its positive bias.
The hourly chart shows the market has stabilised the sell-off but there could be some volatility this afternoon from the ECB meeting.
- There is initial resistance at yesterday’s high of 12,745 above which re-opens the upside once more to test 12,790 and then towards 12,880 the all time high.