DAX Index Forecast – The Index Continues to Chop AroundThe DAX has been trading in a tight range over the last 24 hours
The DAX as expected has been reduced to a small range over the last 24 hours and this is line with the indices all over the world and this was something that was a given after all the action that we had seen earlier in the week. The index would continue to range for the short term.
The Fed hiked rates yesterday and this was something that was quite expected by the markets and most of the market had already started pricing in the same. Also, the Fed sounded pretty hawkish and it appeared as though they were indicating 2 rate hikes during the course of the rest of the year and this was what was a bit of a surprise for the market and a boost for the dollar bulls. As a result of this, the US stock indices corrected lower but that seemed to have little impact on the DAX though which continued to trade in a steady manner.
The index continues to chop around the 12800 region and as we had mentioned in our forecast yesterday, we expect the index to continue to range between the 12500 and the 13000 region over the short term as there are several domestic and international factors that seem to have a say in the direction in which the index moves. So, these act as pressure points on either side of the index which has led to the slow and steady trading that we have been seeing over the last couple of days.
We do not foresee any major fundamental events to rock the DAX index for the rest of the day and hence we can safely expect the consolidation to continue for the day. The traders would be well advised to stay away, especially the ones looking for large moves, for now.