Dax daily: 26 Aug 2019

Aug 26, 2019

Friday's session started relatively innocent. As per our expectations, Dax descended to hit our support zone of 11 759 and closed the gap. We also saw buyers attempting to regain control before the storm hit the markets. News had it that China retaliated on the US import taxes and to no surprise, Trump's swift reaction on Twitter caused even more havoc when he lifted the existing tariffs even more (including services industry) and ordered american companies to withdraw from China. Dax bears started to jump out of the window and retested the subject S/R zone after the initial plunge. Next bearish target was the following support at 11 560 which slowed down the price for a few hours just to drop even lower to close the week at 11 532.

Important zones

Resistance: 11 645, 11 707, 11 611
Support: 11 404

Statistics for today

Detailed statistics in the Statistical Application

Macroeconomic releases

10:00 CEST - EUR - German Ifo Business Climate
All-day - G7 Meeting in France

Today's session hypothesis

For today, we estimate to see some correction of Friday's downfall. Ideally, the price could reach 11 611 - 11 645 levels which could work well for sellers to take the price towards the support around 11 404. Beware of today's news, especially some G7 Meeting after-tremors.