DAX Index Daily Fundamental Forecast – July 14, 2017
After the bullish day on the day before, the traders of the DAX index spent the day yesterday resting and waiting for the next direction from somewhere. We had mentioned in our forecast yesterday that though the index has once again broken through the key resistance, it is still in a state of flux and things may change at any point of time.
DAX In Tight Range
The markets in general, all around the world, were in a state of slumber and it has to be said that the volatility this week has been quite low, especially considering the fact that it is only the second week of the month and we did have our share of economic data and events but none of these have been able to awaken the markets from their slumber. We do have pockets of volatility in certain parts of the markets but in general, they seem quiet and waiting for the next direction.
As far as the DAX is concerned, the economic data from Germany and Europe in general has been pretty strong and this has helped to keep the DAX buoyant but with the changed market dynamics ensuring that improving data would only lead the ECB closer to tapering, we believe that this strength in the DAX will be short lived and we should be back within the tight range pretty soon. We also have the upcoming elections in Germany to deal with and that is one more reason for the DAX to be quiet.
Looking ahead to the rest of the day, we do not have any major news from Germany and so we can expect some more consolidation in the DAX index for today and this should keep the index above 12600 for most of the day. Towards the end, we could see some profit taking for the week which is likely to place the DAX under pressure.
This article was originally posted on FX Empire