DAX Index Daily Fundamental Forecast – March 15, 2018

The DAX index continue to trade within a large range and any kind of economic or political development brings in a lot of volatility but it is restricted to the large range that the index has been trading in. The index fell a couple of days back but the fall was arrested by the lows of the range.

DAX Still in Range

The index has since bounced back from the lows of the range and this is likely to continue and the index is likely to move to the highs of the range. This is something that it has been doing all along over the last few weeks and there is no reason as yet for the index to change its ways at this point of time. Hence we can safely expect the consolidation to continue as the risk sentiment returns to the markets. The firing and the hiring being done in the staff at the White House in the US and also the threat of trade war has been doing the rounds in the recent times.

This forced the risk sentiment to be lower than usual and it has also forced the big traders to abandon their positions and trade with smaller sizes as they sit on the sidelines and watch what happens. In any case, it is going to be difficult for the DAX to post any kind of a move higher in recent times due to the fact that the QE is about to come to an end and this is going to cause drying up of the funds on the buy side.

Looking ahead to the rest of the day, we do not have any major economic news from either Germany or the Eurozone and this is likely to ensure that the consolidation and the ranging continues for the day today which should keep the range traders busy.