Technical Outlook

-The DAX Index is experiencing a bullish phase with potential short-term consolidation in sight due to profit-taking and overbought conditions. Support is seen between 18,040 and 17,870; surpassing 18,210 may target higher levels at 18,500 and 19,000.

-The USDCHF pair shows a positive intraday outlook with ongoing momentum favoring the upside with support at 0.889-0.887.

DE (EUR): Germany Retail Sales MoM

German Retail Sales measures the change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations. It is the primary indicator of consumer spending, which accounts for the majority of economic activity.

A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

The previous reading was -0.4% worse than the expected 0.5%. The upcoming report is due on March 28, 2024 at 07:00 GMT. Its forecast also stands at 0.4%.

DAX Technical Analysis:

The DAX Index is currently navigating a bullish phase within a short-term ascending channel, having recently broken through the 18,000 level. This breakthrough signals strong upward momentum, though the index is anticipated to undergo some consolidation below this peak as investors may start to take profits. Also, the index’s elevated RSI suggests an overbought condition, hinting at the potential for a near-term downward correction, especially as the RSI shows a negative divergence with the price. Key support is identified between the recent low of 18,040 and around 17,870.

If the DAX manages to surpass the 18,210 mark, it could target new zones at 18,500 and 19,000, indicating continued bullish sentiment.

Pivot Points: DAX

US (USD): U.S. Initial Jobless Claims

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

The previous reading was 210K better than the expected 212K. The next report is due on March 28, 2024 at 12:30 GMT. Its forecast stands at 214K.

USDCHF Technical Analysis:

The technical analysis for the USDCHF pair indicates a positive intraday outlook, with the momentum favoring the upside at this stage. The ongoing rally that commenced at a level of 0.8332 recently touched the 0.901 level, completing a bullish projection.

In terms of support levels, a minor support is identified at 0.889 – 0.887. A break below this level could shift the intraday bias back to neutral. However, the overall bullish outlook for the USDCHF pair is expected to persist as long as the key support zone at 0.870- 0.873 remains intact.

Pivot Points: USDCHF

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