The German DAX has dipped a little bit during the trading session, as we are still looking for momentum, and the FOMC is likely to provide that globally. With this, the market looks like it is trying to launch higher again.
DAX
The German DAX has dipped a little bit during the trading session, but we did see a bit of a bounce later in the day. At this point in time, it looks like the 25,000 euro level is an area that people are going to continue to pay close attention to, as it is a large round number and probably options barriers live there as well. This is an area that will cause a lot of headlines to cross the wires.
The market did slightly retreat, perhaps it is pre-FOMC jitters, we will just have to wait and see. There were some winners in Germany such as ASML, but there has also been some problems with certain companies like Bayer, who suffer under the weight of US tariff headlines.
Technical Support and Price Targets
That being said, I do see support here at the 50-day EMA sitting just above the 24,500 level. All things being equal, if we can break above this 25,000 level, then the 25,500 level would be the next target followed by 26,000 euro, which is the projected target by breaking out of this consolidation. This is a market that has been suggesting that kind of move for a while now, and the pullback hasn’t changed that at all.
We have pulled back and now one would expect to see a move to that 26,000 level. It does not mean that it happens overnight, nor does it happen quickly, but it does look a lot like a market that will just grind to the upside.
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