DAX Index Price Forecast January 16, 2018, Technical Analysis
I believe that the German index going sideways during the session on Monday wasn’t much of a surprise, as we are trying to build a bit of a base near the €13,200 level. If we can break above the €13,250 level on the daily chart, I think we will then go higher, perhaps trying to fill the gap from several sessions ago, which is essentially the €13,400 handle. Eventually, I think we break above the €13,500 level, and once we get above there we could go much higher. Alternately, if we were to break down I think that we will go testing the massive support level, near the €13,000 level. That is an area that is massive in its importance, due to the large, round, psychologically significant number.
I believe that given enough time, buyers would be interested in buying in that area as it is a major level on longer-term charts. Ultimately, I think that we will break above the €13,500 level, and then go looking towards the €15,000 level above. This is a market that has recently seen a massive move to the upside, and that multiple traders will be looking at these pullbacks as value. With that type of impulsivity, I would anticipate that we should continue to see momentum build up. That being said, we have to keep in mind that the EUR/USD pair is skyrocketing, so that makes German exports a bit more expensive and could put a bit of a drag on this market.
DAX Video 16.01.18
This article was originally posted on FX Empire