Trading plan for 29/03/2018

Over the night the EUR/USD recaptured from 1.23 and USD/JPY failed to push through 107.00. This is definitely the strongest movement in the major's basket. In addition, the mood on the stock markets has stabilized and the WTI crude oil price has risen - the evening descent at USD 64 has been negated and the rate is almost a dollar above yesterday's minimum.

On Thursday 29th of March, the event calendar is quite busy with important news releases, including KOF Economic Barometer data from Switzerland, German Unemployment Change data, Current Account and Final GDP data from the UK, Canadain GDP data and Unemployment Claims, Personal Spending, Chicago PMI and Revised UoM Consumer Sentiment data from the US.

DAX analysis for 29/03/2018:

The overall carnage on the world stock indices continues, but there are some clues of a possible bounce. The NASDAQ technological index declined on Wall Street yesterday as it fell by more than 1.0%. Dow Jones, however, only made a minimum discount. The futures contract for the SP500 is currently at a ceiling of 2605 points. The main Asian indices: Hang Seng and Nikkei 225 record modest increases or minimum drops and revolve around the line. In turn, Shanghai Composite grows 0.6%. There are not much data releases that could influence the global sentiment, so there is still a possibility of a continuing decline with a local, short-term bounce towards the nearest resistance levels.

Let's now take a look at the DAX technical picture at the H4 time frame. The market has made a new local low at the level of 11,720 and currently, the bulls are trying to break through the technical resistance at the level of 12,020. The bullish divergence between the price and the momentum indicator is supporting the bounce so far. In a case of a more stronger rebound, the next technical resistance is seen at the level of 12,202. The key zone to the bulls is still seen at the level of 12,605.


The material has been provided by InstaForex Company -