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DAX 40 rises as weak German data fails to dampen mood -by Ecork

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DAX 40: Rises higher as weak German data fails to lighten the mood

The DaxEuropean trade was trading higher on strong corporate earnings and constructive sentiment. It appears that early gains weak perfect , as Weak German retail sales data has raised new doubts about the region’s economic recovery.

European markets started the new month with a degree of optimism as HSBC (LON: HSBA), the region’s largest bank, Raise the near-term yield of the tangible equity target to at least 12% from 2023 onwards, expressing confidence in the future, and pledging to restore the quarterly dividend next year. Its stock is up more than 6%.. Gains remain limited in Europe as investors are concerned about the possibility of a recession in the region on the back of disappointing economic data.

How do central banks affect the forex market?

German retail sales It fell in June as consumers cut spending on non-essential goods to counteract record inflation.Sales are down 8.8% over the previous year, the most In three decades. Non-food items such as furniture and appliances or clothing and shoes recorded a sharp decline.The data adds to the already strained outlook. Europe’s largest economy is suffering like few other countriesas More and more economists are arguing that a recession later this year is inevitable.

while, Factory activity in the eurozone Contracted in July with the region bmi manufacturing The index fell to 49.8, compared to a reading of 52.1 in the previous month, as inflationary pressures and macroeconomic uncertainty weighed on demand.. This comes on the heels of a worrying growing global trend With factory activity down in South Korea for the first time in nearly two years, Japan saw the slowest activity growth in 10 months, while in China, the official gauge of factory activity, released over the weekend, fell unexpectedly in July amid the new COVID-19. disease outbreak.

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DAX 40 Daily Chart – August 1, 2022

DAX 40 rises as weak German data fails to dampen mood

Source: IG

DAX 40 2H Chart – Aug 1, 2022

DAX 40 rises as weak German data fails to dampen mood

Source: IG

From a technical perspective, Last week, Friday saw the closing of a monthly candle as bullish candle from the level of support. We closed up 50-SMA At the same time maintaining a bullish structure (higher highs and higher lows) on the monthly time frame. The daily time frame saw another bullish candle close as we are now trading between 50 and 100-SMA.

2h chart on On the other hand experienced an outbreak trend line It was followed by a pullback last week before moving higher. We just hit a new higher high in the second half and we may see some pullback as we are currently trading above the 20,50 and 100-SMA. Sellers may find interest at the 100-SMA around 13660.

Key levels to watch during the day:

Support areas

13400

13296

13000

resistance zones

13660

13850

14000

Written by: Zain Fouda, Market Writer for DailyFX.com

Connect with Zain and follow her on Twitter:Tweet embed

https://www.dailyfx.com/forex/market_alert/2022/08/01/EURUSD-Outlook-Pressing-Higher-as-the-US-Dollar-Loses-Its-Shine-.html

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