DAX Index Daily Fundamental Forecast – September 14, 2017

The DAX index consolidated at the highs of the range over the last 24 hours with a slight bearish tone as the bulls do not seem to have the power to push the prices higher at this point of time. There has not been much change in the risk sentiment over the last 24 hours and that has been reflected in the consolidation of the index during this period.

DAX Likely to Consolidate in Short Term

The focus was on the dollar yesterday as there was not much news from the eurozone. The DAX index continues to be dominated by the thoughts on the upcoming German elections and also on the risk sentiment around the world and this has been weighing on the index. Despite that, we have seen the index rise through the resistance at 12350 over the last couple of days and trade in a strong manner.

This week, there is little by way of fundamental drivers as far as Germany and the Eurozone are concerned and they are likely to be led by the global factors. Yesterday, there was some good news for the dollar but that seemed to have little effect on the European stock markets and with the elections around the corner, we believe that we are likely to see some more consolidation in the markets over the short term as the traders wait for some direction. Though it is apparent that Merkel would again become the President, the traders and the investors, understandably, do not want to commit themselves in any direction at this point of time.

Looking ahead to the rest of the day, the DAX index is likely to open in a steady manner and we are likely to see some steady trading for most of the day with good 2 way action on either side of 12500 for the day. With the lack of news from the Eurozone, we are unlikely to see too much of volatility in the index as yet.