Dax daily: 21 Jul 2020What we saw on Dax yesterday was a nice 'fakeout' example of the 12 882 S/R zone and a good example of the reactive activity below the key level and Thursday's fair price. Buyers stepped in to correct the early morning impulsive pressure an as expected, the price headed towards our target and almost hitting 13 119.
Important zones
Resistance: 13 235, 13 519
Support: 13 093
Statistics for today
Detailed statistics in the Statistical Application
Macroeconomic releases
NIL
Today's session hypothesis
Yesterday's mood on Dax and on the US indices was fairly positive. Not only there is a vision of clinical testing results of the Covid-19 vaccine, but market participants expected a progressive dialogue at the EU Economic Summit and finding a deal after many days of talks. EU finally reached a deal overnight as the member leaders found stimulus of 750 Billion Euro fiscal recovery fund and this comprises of grants and low-interest loans. After this news, Dax jumped higher to open with a big ascending gap, levelled between two S/R zones. We anticipate the positive mood continuation with the chance of pullback towards 13 093 as this corresponds with yesterday's high.
