DAX Index Daily Fundamental Forecast – September 20, 2017

The DAX Index continued to trade within a tight range making it a dream come true for range traders while making it difficult to trade for investors who are looking to invest for the long term. Though the bullish strength underneath is there for everyone to see, the traders are not quite willing to commit into any major investment or trade this week with the upcoming elections.

DAX Likely to Continue Consolidation

All the opinion polls in Germany point to a victory for Merkel and continuing her dominant position not only in Germany but also the whole of Europe as well. But the investors and the traders do not want to stick their neck out and run the risk of it getting chopped over the weekend and that is why we are seeing the consolidation in the markets for now and this is likely to last for this week.

The index broke through the 12350 region during the course of last week and has managed to stay above this region over the past week and this should help to give some encouragement for the bulls who would be looking forward to the next week. The elections are scheduled to be held on Sunday and the results are likely to be known on the same day and so we can expect some good volatility in the index in the coming week.

Looking ahead to the rest of the day, we do not have much news from Germany or the Eurozone for the day which would mean that we are in for some more consolidation. We have the FOMC from the US but that is unlikely to have much of an impact on the DAX Index.