Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst 

European markets, including Ger40-Futures (EUREX: FDAX), opened the week cautiously with a slight 0.3% dip. This was primarily driven by the looming monetary policy decisions from key central banks, such as the Fed, BoE, BoJ, and others in Sweden, Norway, and Switzerland. Sectors like healthcare, consumer cyclicals, and tech bore the brunt of the declines. 

On a positive note, robust Chinese economic indicators provided some relief, indicating increased demand and consumption.  

However, uncertainty still shrouds China’s economic path. Eurozone trade data, though falling short of expectations with a narrower surplus, highlighted softer exports and declining imports, suggesting weakening demand. US consumer sentiment showed a minor decline, but investor sentiment remained resilient, supported by positive consumer inflation expectations. 

Technical 

Ger40 Futures are trading at 15,981.00, just below the daily pivot point. The price remains bullish, supported by the 20-EMA (blue line), 50-EMA (red line), and 100-EMA (orange line), with the 20-EMA recently crossing above the others. However, the RSI shows a slight decline at 59.14, indicating a potential weakening of bullish momentum. 

For short-term opportunities, a sustained push below the daily pivot point may target the 15,875 support level, followed by 15,701 and 15,587.  

Conversely, a bullish resurgence could lead to testing the 16,148 resistance level, with a break potentially targeting 16,290. Traders should monitor these levels for potential trades in the Ger40 Futures market. 

Summary 

Despite challenges in US equities, European markets appeared relatively unscathed. All eyes now turn to the imminent Federal Reserve interest rate decision and FOMC economic projections, which could test buyer appetite and sway market sentiment, with the 16,148 and 15,875 price levels likely to act as levels of significance. 

Sources: TradingView, Trading Economics, Reuters, Dow Jones Newswire