Daily Analysis DAX40 - 11 July 2023

European shares experienced an increase on Tuesday, driven by investor optimism that the U.S. Federal Reserve was approaching the conclusion of its interest rate hike cycle. Additionally, market sentiment received a boost from China's policy measures aimed at supporting its struggling real estate sector. On Monday, China announced an extension of certain policies from a rescue package introduced in November, which will remain in effect until the end of 2024.

Investors also considered statements from multiple Federal Reserve officials, suggesting that the U.S. central bank was approaching the end of its rate hike cycle. Furthermore, German Consumer Price Index (CPI) data was released, aligning with expectations at 6.4% year-on-year and 0.3% month-on-month. This highlights the persistent nature of inflation and may further support the hawkish stance of the European Central Bank (ECB) regarding its tightening cycle.

The DAX is currently in the process of forming a reversal pattern, as it continues to work towards a correction from yesterday's levels, aiming for the 15700 mark. Interestingly, the level that once served as strong support now seems to be acting as a new resistance. The possibility of further selling pressure remains, but it ultimately depends on upcoming data releases and their impact on market sentiment.

Resi Level 3	Resi Level 2	Resi Level 1	Suppo level 1	Suppo level 2	Suppo level 3
16800	16600	16370	15650	15400	15200