Dax 40 – Index Price News & Technical Analysis – 10 October 2022

Dax 40 – Index Price News & Technical Analysis – 10 October 2022

DAX 40 Technical Analysis

European Stocks Largely Lower; German Inflation Elevated Ahead of U.S. CPI Release

European stock markets edged largely lower Thursday, with investors wary ahead of the release of key U.S. inflation data as well as the continued U.K. market turmoil.

By 03:40 ET (07:40 GMT), the DAX in Germany traded 0.2% higher, but the CAC 40 in France fell 0.2% and U.K.’s FTSE 100 dropped 0.5%.

European equities followed their Asian counterparts lower as investors feared a potential shock from U.S. inflation data after the minutes from last month’s Federal Reserve policy meeting showed that the policymakers appeared worried more about doing too little on inflation than too much.

U.S. inflation data due out later in the session could help the U.S. central bank decide the size of its next rate move in November, which markets are predicting to be another 0.75 percentage point increase.

Data released from Germany earlier Thursday showed that consumer inflation in the Eurozone’s dominant economy rose by 10.0% on an annual basis in September, up 1.9% on the month, increasing pressure on the European Central Bank to continue tightening monetary policy.

Elsewhere, investors also remain wary about the possibility of the Bank of England ending its emergency bond-buying program at the end of the week, which could result in more heavy selling in the U.K. gilt market, dragging the pound further lower.

DAX 40 Technical Analysis: Daily Chart

In the daily charts, DAX 40 is trading in down channel. DAX 40 is currently trading above 20 days SMA & below 50 and 100 days SMA.

RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.

Its immediate support is 12073.90 & the resistance level is at 12403.00.

DAX 40 INDEX will trade in down channel until there is trend reversal.   

How to Trade DAX 40 INDEX this Week:

DAX 40 INDEX will follow the downtrend until there is trend reversal. So, remain bearish on DAX 40 INDEX.

TRADE SUGGESTION- SELL AT 12298.50, TAKE PROFIT AT 12073.90 AND STOP LOSS AT 12403.00

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