Market in the red waiting for Jerome Powell

August 17, 2021 16:30

During today's session, we have seen the employment data from the United Kingdom where we can see that the labour market continues to recover little by little after the crises caused by the pandemic after the unemployment rate settled at 4.7%, thus continuing the downward trend after reaching the highest peak last March.

On the other hand, we have also known the preliminary GDP data for the euro area in which although the preliminary GDP for the second quarter of the year has reached market consensus by establishing a growth of 2%, the preliminary year-on-year GDP remains below expectations by reaching a growth of 13.6% compared to the 13.7% expected by the market consensus. Despite this, it seems that the recovery in the euro area is maintaining its positive pace.

If we focus on the main stock indexes, we can see that so far this session they are all trading practically in the red because the market is waiting for Jerome Powell's words this afternoon, after yesterday Monday, the chairman of the Federal Reserve in Boston indicated that this body could see as enough a new positive month in relation to the labor market to begin to reduce its monthly asset purchases. Over the past few weeks there has been a lot of speculation about the possible start of the FED's tapering by pate although it is possible that Jerome Powell will not announce anything about it until the Jackson Hole symposium from August 26.

As we commented in our analysis of last July 23 on the DAX30, after bouncing in the important support area coinciding with the lower band of the side channel and the uptrend line represented by the red circle, the price obtained a new bullish momentum that led it not only to exceed its 18 and 40 session moving averages to the upside, but also led it to break its previous resistance level higher and to mark new historical highs after surpassing 16,000 points last Friday.

After that point and with the growth of rumors about a possible tapering by the FED, the DAX lost just over 0.6% during the week, which has led it to seek support in the orange band that was previously its resistance but that currently acts as support. The loss of this level and its 18-session blank moving average could open the door to further correction in search of its uptrend line.

Source: Admiral Markets MetaTrader 5. DAX30 Daily Chart Data Range: December 22, 2020 to August 17, 2021. Prepared on August 17, 2021 at 12:35 p.m. CEST. Please note that past returns do not guarantee future returns.


Evolution in the last 5 years:

  • 2020: 3.6%
  • 2019: 25.48%
  • 2018: -18.26%
  • 2017: 12.51%
  • 2016: 6.87%


With the Admirals Trade.MT5 account, you can trade Contracts for Differences (CFDs) on DAX30 and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following: 

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.