- The German DAX has rallied significantly during the early hours on Wednesday as we have bounced from the crucial 50 Day EMA.
Support Just Below
Furthermore, we also have a lot of support at the 18,250 Euro level. So, I think it all tied together quite nicely for a little bit of a buying opportunity. If you remember in the last day or two, I have been suggesting that this pullback is just like the one that we had in March. Now it's starting to actually look like that. Well, after waiting to see whether or not we can break above the shooting star from last week. But if we can, then the market is likely to go looking to the 19,000 Euro level.
If we break down below the 18,250 Euro level, then it's possible that we could drop to the 18,000 Euro level, which of course is a large round psychologically significant figure. That a lot of people will pay attention to. Keep in mind, the Germany is the first place that traders go to when it comes to investing in the European Union and the recent sell-off due to the surprising right wing gains in the EU parliament has been completely engulfed again. And I think people are starting to focus on the economy and a lot less on the noise. This is a market that's been in an uptrend for a while and with good reason, because Germany has exited a recession, and of course, Germany is the economic engine of the European Union.
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So, Dax is a market that I think given enough time will go much higher. Perhaps even as high as 20,000 euros, but that's probably more or less an end of the year target. I remain a buyer of dips and have no interest in shorting this market anytime soon. Germany should continue to be a performer over the longer-term from what I see.
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