DAX Index Daily Fundamental Forecast – October 6, 2017

The DAX index continues to struggle to break through the 13000 region. Try as it might, over the past 2 days, it has been unable to push through this region. It has to be said that this region has more of an psychological value rather than anything else and so that is the reason why we believe that it is only a matter of time before the index breaks through.

DAX Still Trying to Break Through

Yesterday also, we saw the DAX moving higher, back to the highs of the range and try and make a break for it but it could not manage. The shackles that the index was under, over the last few days have been well and truly removed and that is why we are seeing the bulls trying to push the index higher and higher over the last few days. If the global trend of stock markets moving up continues, then we should see the DAX moving much higher in the coming days.

Though there is still a bit of political uncertainty in Germany, it has not affected the index too bad for now as Merkel does seem to be in control of her destiny and with her at the helm once again, it is likely that we are going to see a continuation of her policies for another 4 years. Also, with the uncertainty in the UK over the continuation of the UK PM May, the Eurozone is likely to be with an advantage when they sit for negotiations with the UK leaders and this is likely to favor them and Germany as well.

Looking ahead to the rest of the day, the focus would be on the US and the NFP and the wages data from the US which is likely to determine the short term direction for the markets. If it comes out stronger, then we could see another leg of the bullish run in the markets which could be the push that the index needs to move through 13000.