Date: 24 Apr 2019
Consumer confidence in the eurozone seems to have suffered an unexpected setback. Although eurozone consumer confidence has been pessimistic since June 2018, many analysts expected a much better figure when the report was published on Tuesday. After a slight recovery since the beginning of the year, the barometer dropped back to minus 7.9 points.
The economies of the Monetary Union countries are currently struggling with trade conflicts with the US and China. The Brexit issue continues to hover above the EU, albeit postponed further. Substantial consumption in the private sector is therefore essential to cushion the global economic slowdown.
Currently, the leading German index, the DAX, is below an essential structural level in the area of 12,275 points. If the market can breach this critical level, the bulls could face renewed resistance around 12,445. If the market passes this level without any problems, further significant resistance could wait in the 12,085 and 13,224 areas.
If the bull-run ends at this point and the 12,275 area turns out to be too strong, the result could be a drop back to the upward trend line or the 12,000 levels. If this does not provide enough support to the market, there could be further support around 11,800. If the market breaks through here as well, support may come in the 11,520 and 11,275 area.
The MACD oscillator is wide open, and the histogram is in positive territory. However, the histogram is not following the price with the same strength it had at the beginning of April.
Ger30 Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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