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Daily Analysis: DAX Hits New High Again as Ripple Explodes

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Daily Analysis: DAX Hits New High Again as Ripple Explodes

Introduction

Monday Market Recap

Asset Current Value Daily Change
S&P 500 2356 -0.15%
DAX 12315 0.20%
WTI Crude Oil 50.65 0.12%
GOLD 1252.50 0.11%
Bitcoin 1129 4.25%
EUR/USD 1.0675 0.19%

 

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Global stock markets started the week where they left off on Friday as European markets, especially German stocks, remained relatively strong. The DAX hit yet another high as it continues to head towards its nominal all-time high at 12500. US futures are virtually unchanged as the S&P 500 is still hovering around the crucial support/resistance line that we have been monitoring all week long. Economic releases were mixed so far, with the European manufacturing PMIs coming in slightly below the expected levels, although they are still showing growth.

The most awaited European number, the British PMI, was well below the consensus estimate, and the British Pound is trading lower against its major peers after the release. The Australian Dollar is also under pressure as retail sales disappointed in the country. Commodities are relatively so far today, as WTI Crude Oil is still holding on above the $50 per barrel level, following last week’s strong bounce. Gold started the quarter just below the $1250 level, as it got slightly lower during the morning session while the US Dollar gained ground.

Ripple had an epic Sunday after the huge break-out on Friday, as it blew through the 0.0025 resistance and surged all the up to 0.007, almost tripling in value, before entering a deep intraday correction. Litecoin is rallying again as well, and it’s now above the $8 level after the stellar run last week. Bitcoin finally cleared the 1100 level, but momentum is still weak in the most traded cryptocurrency, as the smaller altcoins remain in focus. Dash continued its deep correction, although it might have finally found support near the $63 level. Ethereum and Monero are also sliding, albeit on low volume and without causing major technical damage so far.

Ripple/Bitcoin, 4-Hour Chart

Technical Picture

S&P 500 Index, 4-Hour Chart Analysis

The S&P 500 continues to trade in the holding pattern above the line-in-the-sand support resistance \zone on the 4-hour chart. The index remains relatively weak compared to the DAX and the Eurostoxx 50 although the Nasdaq lost some of its relative strength, possible pointing to a coming downswing for the US markets. Trend-line resistance is ahead near 2372, with strong support found near the 2319 level, with a weaker line around 2332.

Key Economic Releases on Monday

Time, CET Country Release Actual Expected Previous
3:30 AUSTRALIA Retail Sales (monthly) -0.10% 0.30% 0.40%
10:30 UK Manufacturing PMI 54.2 55.1 54.6
16:00 US ISM Manufacturing PMI 57.2 57.2 57.7
Time, CET Country Release Actual Expected Previous
3:30 AUSTRALIA Retail Sales (monthly) -0.10% 0.30% 0.40%
10:30 UK Manufacturing PMI 54.2 55.1 54.6
16:00 US ISM Manufacturing PMI 57.2 57.2 57.7
 14:30 CANADA GDP (monthly) 0.60% 0.30% 0.30%
15:45 US Chicago PMI 57.7 57.2 57.4

Key Economic Releases on Tuesday

Time, CET Country Release Expected Previous
6:30 AUSTRALIA RBA Rate Decision 1.50% 1.50%
10:30 UK Construction PMI 52.50% 52.50%
14:30 CANADA Trade Balance 0.7 billion 0.8 billion
 14:30 US Trade Balance -46.7 billion -48.5 billion
16:00 US Factory Orders (monthyl) 0.90% 1.2%
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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

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