DAX Index Price Forecast August 10, 2017, Technical Analysis

The German index gapped lower at the open on Wednesday, and then drove down to the €12,100 level. We did bounce from there, and we have seen a significant amount of support at that area previously. Obviously, we are seeing volatility pick up in this market but overall it looks as if the market is grinding sideways. The gap that opened the day should be a target and the short-term, and I think that we will continue to grind back and forth. A lot of this comes down to the EUR/USD pair, and its effect on German exports. The higher the currency pair goes, the more expensive German exports become, which puts a bit of a drag on the DAX.

The floor below

The floor below in this market is the €12,000 level as far as I can see, so as long as we can stay above there, I think that there is a nice buying opportunity. If we break down below the €12,000 level, then the market could fall apart. However, I think that the DAX will do relatively well longer-term, it seems as if we are trying to enter a bit of an accumulation phase.

DAX Video 10.8.17