German DAX has surged higher after a succcesfull defense of the nearest support area at 11700. Bullish momentum remains strong, and price has edged higher towards the upper bound of the consolidation. There are first bearish reversal signals within the resistance area around 11850. Shooting star has been followed by two doji candlesticks. Therefore we may see a leg lower, but the short-term bullish trend remains intact.
DAX remains on elevated levels, after a small retracement, price could surge towards the upper bound of the consolidation, source: xStation5
US bond and stock markets are shut today for President’s day. Investors eyes are turned to Europe, and political risk is in focus. We’ve had plenty of interesting political events over the weekend. German Chancellor Angela Markel has spoken at the Munich Security Conference, she’s made some remarks on the strength of the EUR and it’s influence on the German economy. She’s said that ’we have at the moment in the euro zone of course a problem with the value of the euro".
However European stocks advance. Tomorrow we will receive manufacturing PMI from Germany. In Europe, the biggest focus will be on the PMIs as the EU economy seems to be getting hotter. Another solid streak of data may lead to more hawkish ECB rhetoric and in turn, could support the euro.
- Deutsche Telekom rises by 3% after its US unit T-Mobile was said to be targeted by Sprint owner Softbank in a potential merger, according to Reuters companies are expected to begin negotiations when a process on U.S. spectrum auction ends in April
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