The German 30 Index has settled down over the last number of hours into a trading range between 12400.00 and 12200.00. This follows the highly volatile moves since the start of the month. With US inflation data tomorrow volatility could return but for now, the market is steady. There are a number of patterns on the chart. The over-riding pattern is a triangle shown here in blue, with a top line at 12474.00 and a bottom at 12022.00. There is also a red channel or bull flag that price broke above in yesterday’s session. A retest of the top line can occur at 12096.00, as resistance becomes support. The broken supporting trend line in dashed red comes in at 12110.00, against support turning to resistance and back to support. As mentioned, the trading range for this week is shown in blue using the 100-hour MA as resistance.
Major supports are at 12096.00, 11914.9 and 11681.20. Major resistance is at 12473.9 and 12680.00.
This pair has formed a descending wedge since late January/early February. This is due to a false break out above the blue dashed line and the collapse under resistance turned support at 136.300. The move back below created a dramatic red candle through the line at 136.110 and the moving averages.
Resistance comes in at 133.820 and 134.493 but in order to be tested the top of the red trend line needs to be broken at 133.425. Above these levels, the 100 and 200 MAs are together at 134.760, with resistance at 135.012 and the broken trend line at 136.000. Further resistance is at 136.302 and the high at 137.500. Support below the current price level starts at 132.515, with the top of a 125-pip wide support area at 132.262 down to 131.000. The bottom of the wedge is located at 131.868.