DAX30 CFD landing between 12,300 and 12,450 before the Fed
With a very thin economic calendar today, Monday, and the Fed rate decision coming on Wednesday, we want to focus now on the technical picture in the DAX30 CFD.
After the ECB "delivered", as expected, a very dovish statement last Thursday with keeping interest rates unchanged, but an adjusted forward guidance which allows rate cuts, but also rate tiering (to relieve pressure on European banks resulting out of a collapse in yields) and QE in the near-term, the comments from ECB president Draghi that no rate cuts were discussed at the meeting among board members, pushing the German index aggressively lower.
Interesting enough, the DAX30 CFD found support around 12,300 points, but couldn't recapture the region around 12,440/460 points into the weekly close.
In our opinion, this should be seen as the trading floor in which the German index will trade at least until the Fed on Wednesday.
Still, since the 1980s Equity markets have seen a drift higher in the hours before the Fed rate decision, expecting an equity-friendly stance.
That said, we tend to see a higher likelihood of an attempt to break above 12,440/460 points which could open the door for further gains up to 12,600 points.
On the downside a break below 12,300 points levels the path down to 12,150/200 points.
Ready to take your trading to the next level? Find out how in Admiral Markets’ new webinar series Trading Spotlight, where our trading experts will be discussing risk management, trading psychology, and their top strategies for trading the world’s most popular markets - admiralmarkets.com/education/webinars/trading-spotlight-1
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
After the ECB "delivered", as expected, a very dovish statement last Thursday with keeping interest rates unchanged, but an adjusted forward guidance which allows rate cuts, but also rate tiering (to relieve pressure on European banks resulting out of a collapse in yields) and QE in the near-term, the comments from ECB president Draghi that no rate cuts were discussed at the meeting among board members, pushing the German index aggressively lower.
Interesting enough, the DAX30 CFD found support around 12,300 points, but couldn't recapture the region around 12,440/460 points into the weekly close.
In our opinion, this should be seen as the trading floor in which the German index will trade at least until the Fed on Wednesday.
Still, since the 1980s Equity markets have seen a drift higher in the hours before the Fed rate decision, expecting an equity-friendly stance.
That said, we tend to see a higher likelihood of an attempt to break above 12,440/460 points which could open the door for further gains up to 12,600 points.
On the downside a break below 12,300 points levels the path down to 12,150/200 points.
Ready to take your trading to the next level? Find out how in Admiral Markets’ new webinar series Trading Spotlight, where our trading experts will be discussing risk management, trading psychology, and their top strategies for trading the world’s most popular markets - admiralmarkets.com/education/webinars/trading-spotlight-1
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
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