DAX 30 Pullback Ahead of U.S. Durable Goods Orders

Talking Points

• The multi-week trend defining level is the March 10 low of 9397, while the short-term trend defining level is last week’s low of 9748.
• German GfK Consumer Confidence report, published this morning, slid to 9.4 from 9.5 in March.
• This afternoon is packed with market moving indicators coming out of the U.S.

Yesterday, the DAX 30 stalled near the January 13 high of 10,166 and has since given back some of this week’s gains, however, the overall trend remains bullish and the last 24 hours of decline could consequently prove to be more short-term in nature.

The multi-week trend defining level is the March 10 low of 9397, while the short-term trend defining level is last week’s low of 9748.

Resistance levels are the January 13 high of 10,166, followed by the January 5 high of 10,395 on a successful breach of that January 13 high.

The German GfK Consumer Confidence report, published this morning, slid to 9.4 from 9.5 in March, and printed lower than the 9.5 projected by a Bloomberg survey.

This afternoon is packed with market moving indicators and the U.S. session kicks off with U.S. Jobless claims which are seen at 269K, followed by Durable goods orders, which are expected to decline by 3 percent MoM.

At 13:45 GMT, Markit US Services PMI is expected to rise above the 50 level threshold. In February, this economic indicator slid below 50, which implies a contraction in the service sector. Today, economists surveyed by Bloomberg expect it to rise to 51.4 and the failure to meet these expectations may trigger a strong market reaction. Durable goods orders will also be key here.

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DAX 30 | FXCM: GER30

Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com

Contact and follow Alejandro on Twitter: @AlexFX00

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original source

By: Alejandro Zambrano, Market Analyst