DAX Index Price Forecast August 11, 2017, Technical Analysis

The German index broke down during the day on Thursday, crashing into the €12,000 level. A breakdown below here makes the downtrend a very serious thing. If we can break down below that level, I think we will start to be in a “sell the rallies” type of market. This will be especially true the EUR/USD pair continues to skyrocket, because that gives you another headwinds when it comes to exports coming out of Germany. Ultimately, this market is at a precipice right now, and the next 24 hours could be vital when it comes to the direction of the DAX. I will wait until the daily close, it’s likely that the market will continue to base its trade off the daily candle.

Breakdown?

I believe that a breakdown could be coming, and if it does the DAX will be vulnerable for a move down to the €11,500 level. Alternately, if we break above the €12,100 level, the market should go higher. This being the case, it’s very likely that the market will find plenty of volatility, and I believe that given enough time we will find some type of directionality that we can follow for a much longer-term trade. In the meantime, expect a lot of noise and danger in this general vicinity.

DAX Video 11.8.17