The German index rallied significantly on Monday

The German index rallied rather significantly during the trading session on Monday, reaching towards the €13,000 level. This is an area that has been a target of mine for some time, and now it looks likely that the €12,750 level will offer a significant amount of support. I think that the market continues to be one that you can buy on dips, as the EUR/USD pair has been following for some time. The cheaper EUR/USD pair has been giving the market reasons to think that German exports continue to be boosted by currency tailwinds.

Ultimately, I think that every time we pull back, it’s likely that buyers will come back into pickup this value, and the explosive move that we have seen over the last couple of days should send this market higher. Overall, I think it’s a matter of time before we break above the €13,000 level, and then start targeting the €15,000 level to the upside. I believe that the uptrend continues, and I think that every time we pull back you should look at the selling as a bit suspicious. I think that the EUR/USD pair will continue to drift lower towards the 1.15 level over the course of the summer, so it’s likely that the DAX will continue to benefit from these situations. The strengthening US dollar and of course concerns about the need for extending quantitative easing in the European Union should continue to be a major driver of this market.

DAX Video 08.05.18