DAX Index Price Forecast August 4, 2017, Technical Analysis

The German index fell initially during the day on Thursday but bounced from the €12,100 level again. This is a market that is waiting the jobs number coming out of the United States, because it has such an influence on the EUR/USD currency pair. This pair has been rising, which has been very negative for … Continue reading DAX Index Price Forecast August 4, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Thu, Aug 3, 2017, 10:44 PM

The German index fell initially during the day on Thursday but bounced from the €12,100 level again. This is a market that is waiting the jobs number coming out of the United States, because it has such an influence on the EUR/USD currency pair. This pair has been rising, which has been very negative for the DAX as it is an index that is heavily laden with German exporting companies. As the EUR rises, it makes those exports more expensive. However, I believe that longer-term we are starting to see a bit of a bottom in the market as the European Union is starting to look a little bit stronger. PMI numbers coming out of Germany were a little bit softer than expected during the session today, but quite frankly I think that’s more of an anomaly than anything else.

Buying dips

I believe that buying dips will continue to be the case going forward, and then eventually we will see value hunters enter the DAX. I believe that the €12,000 level underneath is massively supportive, and is essentially the “floor” in the uptrend. As long as we can stay above there, I’m a buyer of the DAX on dips and believe that longer-term we will go looking towards the €12,500 level. It is worth noting that the loan during the Thursday session was higher than the previous low, and we could be seeing the market try to turn around and show signs of strength again.