Yahoo Finance DAX Price Forecast – German index rallies significantly after Euro falls
The German index exploded to the upside during the trading session on Thursday, slicing through the €13,000 level as if it wasn’t even there. A lot of this comes down to the EUR/USD pair breaking down significantly after the ECB suggested that although it was stepping away from quantitative easing, it was not killing it off completely. We will still see several months of €15 billion being applied to bond buybacks, as opposed to wiping it out. By only cutting out half of the quantitative easing, I think it has caught the market by surprise, and it has cheapened the currency.
The €12,750 level looks to be the “floor” in general, and if we were to fall back to that level, I think it would bring in a lot of value hunters. However, after the impulsive move that we have seen during the day on Thursday, is very unlikely that we will see that level anytime soon. Longer-term, I think that we still will continue to go towards the €15,000 level above, which has been my longer-term target for some time. It’s going to take a long time to get there, but in the meantime I believe that pullbacks continue to offer value the people will take advantage of. In fact, I think that the €13,000 level could be a nice area to start getting involved. I believe that we are a bit overextended on the hourly chart, but I do think that value hunters will return sooner, rather than later from what I see.
DAX Video 15.06.18
This article was originally posted on FX Empire
