DAX Price Forecast July 12, 2017, Technical Analysis

The German index had a volatile and choppy session as we continue to test the €12,500 level. There is a significant amount of resistance in that area, and it looks as if the DAX is ready to roll over slightly. However, I think that this is more or less going to be an accumulation phase than anything else. Because of that, I believe that the markets will continue to find this market reacting to currency headwinds in the EUR/USD pair, as a rising EUR tends to work against the idea of exports coming out of Germany. Because of that, pay attention to the currency markets, and of course whatever Janet Yellen says in front of Congress today, as it will affect the US dollar, which will have a knock-on effect against the EUR in the EUR/USD pair.

Continue choppiness

I think continue choppiness dictates that you will have to use a range bound trading strategy to take advantage of what’s going on in the DAX. I think short-term trading is probably about as good as this is going to get, and therefore I don’t have any interest in trying to press the issue. I would keep my position size is small, as the volatility could get quite dangerous. Market participants continue to find plenty of reasons to stay on the sidelines, and that might be the best advice.

DAX Video 12.7.17