Dax futures slip as Merkel considers extending Germany's lockdown. Gold fails to interrupt above descending trendline, Powell focused .

Dax slips as Merkel considers extending German lockdown


The Dax continues to fall faraway from last week’s all time high.


German Chancellor Angela Merkel is considering extending the lockdown in Germany for a fifth month due to a 3rd wave of covid.


She will meet today with the 16 leaders of the states to make a decision on the course of action.


The sluggish vaccine rollout is doing little to assist things with around just 8% of the adult population vaccinated against covid.


Where next for the Dax?


The Dax hit an all time high last week of 14800 before rebounding lower. The Dax has fallen through its 20 sma on the 4 hour chart and is currently finding support at the 50 sma at 14580, A level which also provided strong resistance on the advance last week.


The RSI is mildly bearish. However bears will got to break down the 50 sma so as to check support at 14400 horizontal support March 10, before 14230 the ascending trendline dating back to pre-pandemic.


However, should the 50 sma hold, bulls will search for a withdraw over the 20 sma at 14650 before the all time high at 14800 is retested before 150000 key psychological level.Gold fails to interrupt above descending trendline, Powell focused 


US yields are holding steady around 1.70%, enabling the US Dollar to treat from highs.


Joe Biden is considering a replacement economic plan including infrastructure spending and tax hikes.


Jerome Powell is thanks to testify with Treasury Secretary Janet Yellen over the response to the pandemic


Where next for Gold prices?


Gold trades within its descending channel dating back to early January.


The precious metal rebounded off the lower band at the beginning of March and has been trending higher across the month so far .


However, Gold is struggling in early trade on Monday after failing to interrupt above the upper band of the descending channel. it's fallen through its 20 sma on the 4 hour chart and has thus far found support at the 50 sma at 1730 – the day’s low.


The RSI is heading into bearish territory, although an opportunity through the 50 sma at 1730 is required so as for the bears to attack 1700 round number and 1685 the low March 5.


Should the 50 sma hold, a transparent break above the upper band of the descending channel at 1740 will bring 1755, high 18 March into target before 1760 February 18 low.