The DAX 30 index started a major downside move from the 13,525 swing high. The index declined below a couple of important support levels such as 13,300 and 13,200 and even settled below the 100 simple moving average (4-hour).
There was even a break below the 13,000 level and the index traded as low as 12,855 where buyers appeared. Later, a correction wave was initiated and the index moved above the 23.6% Fib retracement level of the last decline from the 13,524 high to 12,855 low.
There was also a break above a major bearish trend line at 13,060 on the 4-hours chart. However, the index seems to be struggling near the 13,100 level and the 38.2% Fib retracement level of the last decline from the 13,524 high to 12,855 low.
Therefore, there can be a few swing moves before the index moves above 13,200 in the near term.
Today in the Euro Area, the Current Account report for Sep 2017 was released by European Central Bank. The forecast was slated for the trade balance to be €30.2B.
However, the actual result was better than the forecast, as the trade surplus was €37.8B, which was also above the last revised €34.5B. The non-seasonally adjusted value was €41.8B. The report added that “The 12-month cumulated current account for the period ending in September 2017 recorded a surplus of €346.4 billion (3.2% of euro area GDP), compared with one of €359.3 billion (3.4% of euro area GDP) for the 12 months to September 2016”.
Overall, the result was positive and might help the market sentiment in the near term.
There was a downside move in the SPX 500 Index from the 2,600 swing high. It moved down and traded below the 2,580 support and the 100 simple moving average (4-hour).
Later, it found support near 2,558 and started an upside move. It is now back in the bullish zone with the help of a break above a major bearish trend line with resistance at 2,580 on the 4-hours chart.
The index is also above the 100 SMA and the 2,575 level, which is a positive sign and calling for more gains in the near term.
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