DAX Index Price Forecast June 30, 2017, Technical Analysis

The German index fell apart on Thursday, initially gapping higher and then breaking down significantly. We break down below the €12,500 level, and that is a very negative sign. The fact that we have done that suggests that the market is probably going to go looking for support at lower levels. The €12,400 level underneath will be the first target, just as the €12,300 level under that will be. This is a significant break down, and I believe that the DAX will now continue to struggle. A lot of this was probably due to the currency markets however, so you will have to pay attention to the EUR/USD pair.

EUR/USD and floods

The EUR/USD pair continues to offer for this market, as a stronger Euro will hurt German exports. That of course works against the DAX, as it is a listing of major exporting companies out of Germany. With this being the case, I think that the €12,500 level now will offer a significant amount of resistance, so a rally to that area that fails would be and I selling opportunity, but it appears that the downward pressure is accelerating as I record this. Suddenly, the DAX looks very bearish and I have no interest in buying what looks to be a completely broken market. If we did get a daily close above 12,500, then I would consider buying, but that looks to be very difficult to imagine in the short term.

DAX Video 30.6.17