Current trend

During the Asian session, the Frankfurt Stock Exchange DAX 40 index shows ambiguous trading dynamics, remaining close to 18430.0. On Tuesday, the price retreated from record highs against German macroeconomic statistics.

Thus, in March, the consumer price indicator increased by 0.4%, as before, while analysts expected the dynamics to accelerate to 0.6%, and inflation in the largest EU economy slowed from 2.5% to 2.2% YoY, justifying the forecasts. The harmonized figure strengthened by 0.6% and 2.3%, below analysts’ expectations of 0.7% and 2.4% in monthly and annual terms, respectively. The values are the lowest over the past four months but remain above the target levels of the European Central Bank (ECB), which may hinder monetary easing.

Today, S&P Global German service PMI will be published. According to preliminary estimates, the March indicator will remain at 49.8 points and the composite indicator at 47.4 points. At the end of the week, investors will pay attention to the dynamics of the German import price index and statistics on the volume of industrial orders, which may increase by 0.8% in February after declining by 11.3% earlier.

Support and resistance

On the daily chart, Bollinger Bands are actively growing: the price range is narrowing from above, reflecting the emergence of ambiguous trading dynamics in the short term. The MACD indicator reversed downwards, generating a sell signal: the histogram is below the signal line. Stochastic is declining, slightly correlating with the actual market dynamics.

Resistance levels: 18500.0, 18600.0, 18700.0, 18800.0.

Support levels: 18400.0, 18300.0, 18200.0, 18088.1.

Trading tips

Short positions may be opened after a breakdown of 18400.0, with the target at 18200.0. Stop loss – 18500.0. Implementation time: 2–3 days.

Long positions may be opened after a breakout of 18500.0, with the target at 18700.0. Stop loss – 18400.0.