DAX Index Price Forecast August 14, 2017, Technical Analysis

The German index rallied during the day on Friday, breaking above the €12,000 level. However, this is an area that I expect to see quite a bit of fighting, and of course the EUR/USD pair has rallied enough to put a bit of pressure on this market as well, as it makes German exports a bit more expensive. That being said, I recognize of this is an area where we will have to make some type of decision as to where we are going longer term. If we make a fresh, new low, then we could drop as far as €11,500 underneath. Ultimately, if we break higher, I think that a clearance of the highs from the Friday session, the market could go back to the €12,250 level next.

Volatility will continue

I believe that the volatility will continue, mainly because of the currency headwinds. However, the European Union is strengthening, and that should help the DAX overall. Given enough time, I expect the buyers to come back, but the question now remains as to whether they will come back now, or if they will do it at lower levels. We are in an uptrend, and that of course hasn’t changed regardless of how negative it has been over the last several sessions.

DAX Video 14.8.17