FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (USCAD and EURJPY) for the day)
FxWirePro : DAX and Credit Suisse crisis
Major resistance- 12400
DAX30 is trading weak for a third consecutive week and declined more than 1000 points on the economic crisis. Global stock markets are under pressure as Swiss banking giant Credit Suisse is in deep trouble. Its five-year credit default swaps (CDS) rose by six basis points to close to 248 bpbs, the highest level since 2008 (Lehman brothers moment). Any default by Credit Suisse and Deutsche banks will drag the DAX down to 10000.
German treasury yields rose the previous week after a double-digit German inflation rate.
On the flip side, near-term support is around 11800 and any violation below will drag the index down to 11200/10000. The major weakness is only below 9875.
The near-term resistance is around 12150 and any break above will take the index to next level till 12400/12550/13000.
It is good to sell on rallies around 12380-400 with SL around 13000 for the TP of 10000.