DAX to challenge January’s low – FXStreet

By FXStreet The German DAX lost 41 points to end the day at 9,393.36, although most European indexes managed to close in the green, as oil’s prices recovered during the London session.

The German index traded as low as 9,262, stalling its decline just above January’s low of 9,256. ECB’s President, Mario Draghi, said that adopting a wait-and-see attitude for too long, should inflation remain low, is riskier than taking early measures as the former approach could erode confidence. The comments spurred some risk sentiment among local investors, while a stronger EUR also weighed on local equities.

DAX technical perspective

“The index is at a brink of breaking and over 1 year low, with the daily chart showing that it’s back well below a sharply bearish 20 SMA, while the RSI indicator heads south around 37 and the Momentum indicator hovers in negative territory”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the 20 SMA has accelerated its decline above the current level, while the technical indicators remain well below their mid-lines. A break below 9,256 should lead to a downward acceleration, with the market then targeting the 9,000 figure.”

Support levels: 9,335 9,256 9,178. Resistance …read more

Source:: FX Street