Two trades to watch: EUR/USD, DAX
Fiona Cincotta March 2, 2021 2:47 AM
EUR/USD falls after weak German retail sales, EZ CPI up next. Dax below 14000 on global asset bubble fears
Dax Eases Below 14000
European indices are pointing lower after senior Chinese officials expressed wariness about the risk of asset bubbles in foreign markets.
Weak German retail sales will add to the downbeat sentiment.
German unemployment data is due at 08:55 UTC and is expected to remain a 6% in January
Where next for the Dax?
The Dax continues to trade within a holding pattern capped on the upside by the all time high above 14170 and capped on the bottom side by 13565. It trades above its 50 & 100 sma on the daily chart although the rise higher has shown signs of exhaustion since the start of the year.
The price trades towards the upper end of the horizontal channel however but failed again yesterday to move convincingly above 14000. A sustained move over this level is required to test the all time high and target 14500.
On the downside the 50 sma offers support at 13840 ahead of the lower band of the channel at 13565. A move below the 100 sma at 13400 could see more bears jump in.
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