DAX Price Forecast for August 1, 2017, Technical Analysis

The German DAX initially tried to rally on Monday but found the €12,200 level to be a bit too resistive to continue going higher. Because of this, the market looks to drop from here and reach towards the €12,100 level. I believe that given enough time we could try to test the €12,000 level underneath, which is essentially the “floor” in the uptrend from what I can see. Because of this, I am watching this market with great interest as we see so much in the way of importance on that level. I believe that if we break down below the €12,000 level, then it should open up the floodgates for sellers. Until then, the market could be very choppy, and I think it’s a very difficult to trade this market with any conviction in the short term.

On the sidelines

I think it’s probably best to be on the sidelines currently as the market continues to chop around, and of course there is the knock-on effect from the EUR/USD pair. The currency headwinds coming out of the Forex markets will make German exports expensive, and that could weigh on the DAX going forward. Ultimately, I believe that the market will chop around rather drastically, but eventually we should try to form some type of the longer-term move. Until we get the impulsive move though, I suspect that it is probably a market that is going to be relegated to the domain of scalpers, and as far as a longer-term or even a swing trade, it’s very difficult to imagine risking money. I will keep an eye on this market, and of course let you know here at FX Empire what I am doing when conditions dictate putting money to work.

DAX Video 01.8.17