GER30 finds support after Chinese data disappoints
The GER30 has shaken off some of the risk-off sentiment after China's quarterly GDP came in lower than expected – 6.3% vs 7.1%
Daily Chart (left chart)
- The daily candle (still to complete) is a dragonfly doji (blue arrow). Bears lost control at the candle's low, and bulls have pushed price back up as they exert control.
- The candlestick is in the bullish channel between the upper blue and red bands.
- The RSI has oscillated around 50 over the last month (blue rectangle).
- If the RSI can maintain above 50 (black rectangle), an underlying bullish support will be present and supportive of the daily GER30.
Hourly Chart (right chart)
- Price has found a confluence of support – the S1 pivot which overlaps with price support (red shaded horizontal).
- The trend-following EMAs and the momentum-based stochastic have both crossed up (black ellipses).
- If the EMAs develop angle and separation to the upside and the stochastic settles above the 80+ levels (green arrow), the hourly GER30 chart will have an underlying bullish momentum.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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