German index rallies during the week, showing strength yet again as we clear major milestone
The German index rallied during the week, reaching towards the €13,100 level, as we have broken above the €13,000 level. The market should continue to show signs of value hunting on pullbacks, and I think that the €12,750 level will offer a bit of a floor. I believe that the EUR/USD pair is showing signs of breaking down, and if it continues to do so we should see the DAX market continue to go much higher. Once we break above the €13,600 level, that could be a very bullish sign and we could continue to go much higher.
I believe that short-term pullbacks continue to offer value the people take advantage of, and I believe that there is essentially a “floor” in the market at the €12,000 level. I don’t have any interest in shorting this market, and I believe that we will continue to find plenty of reasons for the market to go higher, not the least of which is going to be the currency situation. Beyond that, we should also pay attention to the fact that the European Central Bank is likely to keep interest rates very low. Because of this, that should continue to have people jumping into equities in the European Union, and that certainly means the DAX as it is the “blue-chip index” of the region. I have no interest in shorting this market, at least not until we break down below the €11,800 level.
DAX Video 21.05.18
This article was originally posted on FX Empire