DAX (a 4-hour chart)
The sentiment on the European markets worsened on Wednesday following Ericsson shares decline. Investors were cautious ahead of the Fed minutes publications.
DAX gapped higher at the beginning of the day. The price jumped from 10550 to the 10600 level where the price turned around and moved lower. DAX was struggling with the 10500 level during the NY session. The price broke the 200 EMA and touched the 50-EMA in the 4 hours chart. The 100 and 200 EMAs are moving lower. The 50-EMA direction is upwards. The resistance is seen at 10600, the support is at 10500.
MACD remained in the positive area. MACD decreased which indicates the buyers’ positions weakening. The RSI oscillator moved downwards.
A break below 10500 will weaken buyers’ positions and will allow sellers to test 10400. If the level holds the price will recover towards 10600.