Intraday note (DAX/EURUSD)

Intraday note (DAX/EURUSD)

The departure of Gary Cohn, one of the main opponents of protectionism around Trump, has revived fears of trade war. There are also rumors that the United States is considering a wide range of tariffs on Chinese imports. However, the effect has been relatively modest in Asia where the response to the potential US protectionist measures has been relatively discreet so far. As mentioned yesterday, trading in a climate of political uncertainty is more risky and volatile, but the effects tend to fade over time. Overall, global growth and strong corporate earnings continue to support risky assets in the longer term.

The DAX will openin a bearish gap and could find a buying support between 12030 and 11980 for a potential rebound to 12115, then 12280 in case of break above. Below 11980, consider a continuation of the decline to 11950 then 11875.

Support: 12033 (50% Fibonacci), 11980 (61.8% Fibonacci), 11950

Resistance: 12115 (yesterday close), 12285, 12370



The EUR/USD broke the level identified yesterday of 1.2365 and as long as this level holds, consider a continuation of the upmove towards of 1.25 / 1.2550.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.