DAX Price Forecast July 28, 2017, Technical Analysis

The German index fell initially during the day on Thursday, but continues to find support somewhere near the €4100 level. Overall, one of the biggest drags on this market has been that the EUR/USD pair has been grinding higher, and that of course makes German exports more expensive. I believe that there is a massive “floor” in the uptrend near the €12,000 level, so as long as we stay above there I think that the uptrend is somewhat intact. However, this is a very negative move, and I think that it’s probably best to leave the DAX alone in the short term, as it tries to settle itself in this area, and perhaps pick up momentum in one direction or the other.

On the sidelines

I believe in being on the sidelines currently, but if we were to break above the €12,350 level, I would be a buyer. Alternately, if we were to break down below the €12,000 level I would be a seller as the market would have shown significant weakness and essentially broken apart longer-term and not only that, but had sliced through a gap on the daily chart. There is a lot of noise that the market, and I think that we could see quite a bit of damage to trader’s accounts around the world. With this type of volatility, I suspect that it’s probably best to simply wait for the market to prove itself in one direction or the other.

DAX Video 28.7.17