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DAX Index Daily Fundamental Forecast – April 24, 2017

By:
Colin First
Updated: Apr 24, 2017, 08:50 UTC

DAX has had a very strong opening for the day as it threatens to break through the all time highs during the course of the day

DAX Index Daily Fundamental Forecast – April 24, 2017

DAX has had a very strong opening for the day as it threatens to break through the all time highs during the course of the day. We had been mentioning in our forecasts for last week that the index was trading week as the traders feared the worst as far as the French elections were concerned. The traders were concerned that the French people could throw up a mandate similar to the one in the US last year and this could lead to Le Pen wresting the lead in the French elections.

DAX Skyrockets

But it is a relief to the traders as the election results have come in and as expected, Macron and Le Pen are heading to the run off on May 7 but the results show that Macron has a comfortable lead in the elections that have just concluded. Also, opinion polls show that Macron has a clear lead of 60-40 in the elections for May 7. Macron is viewed as very business friendly and his campaign had been about improving the economy of France and he is also seen as euro-friendly. This was enough for the traders to signal their happiness and this has been showing in the stock markets since the beginning of the European session.

DAX Hourly
DAX Hourly

The Euro markets have skyrocketed on this positive news and this has helped the DAX to push through towards the range highs. The index now trades just short of the all time highs and it looks pretty strong and it only requires a small clear break through the highs for the bulls to return in full force. Also, to further boost the DAX, the German Ifo Business Climate data came in better than expected and this has continued the trend of strong data from Germany.

Looking at the rest of the day, there is no further news from Germany today but we expect this momentum to continue and all eyes will be looking for a clear break of the range highs.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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