DAX Index Price Forecast March 1, 2018, Technical Analysis

German markets continue to be relatively flat, as we continue to make an attempt to build up the necessary momentum to break out to the upside. The €12,500 level seems to be a bit of a magnet for price, and if we can clear that level with any type of momentum, I think that the market then goes to the €12,750 level, that’s an area that has been important in the past. Clearing that surely should open the way towards the €13,000 level. That is an area that I think will continue to be very interesting and could get broken to the upside with a little bit of risk appetite.

The German index should continue to find plenty of buyers as the DAX is the “blue-chip” stock index for the European Union. I think that the market will then eventually find plenty of buyers based upon the underlying strength of the European Union. After all, the ECB is looking to step away from quantitative easing in the next year or so, showing that the underlying economy is starting to show signs of strength.

Keep in mind that the value of the EUR/USD pair can correlate with this market, but longer-term I think that eventually we will break out to the upside regardless, because I believe that Germany’s economy still looks strong. Even with a stronger Euro, I think there’s enough momentum in Deutschland to drive things to the upside. If we broke down below the €12,000 level, that would change everything though. Currently, I think a breakdown is unlikely, perhaps maybe a 10% chance.

DAX Video 01.03.18