DAX: downside risks prevail – FXStreet

By FXStreet FXStreet (Córdoba) – European indexes closed the day with mild losses after a choppy journey, with the German DAX down by 40 points to 9,757.88. The release of the final Markit PMIs for January showed a slow start for the manufacturing session at the beginning of the year, as the German and EU figures came below December ones.

DAX technical view

“The daily chart shows that the index is currently hovering around a bearish 20 SMA, whilst the technical indicators have gained tepid bearish slopes below their mid-lines, maintaining the risk towards the downside”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index presents a neutral stance, as its moving back and forth around a flat 20 SMA, while the technical indicators lack directional strength around their mid-lines. A recovery above 9,847, the daily chart, should signal easing bearish pressure, yet a rally towards 10,000 is still seen as unlikely, at least for this Tuesday.”

Support levels: 9,712 9,648 9,588. Resistance levels: 9,847 9,921 10,000.
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Source:: FX Street