The German index went sideways during the session on Thursday, as we continue to hover around the €12,600 level. This market continues to look positive though, as the 24-hour exponential moving average seems to be offering support and is just below current levels. I believe that the market will then go looking towards the €12,750 level above, which has in the past been a support and resistance area. The market looks very likely to continue to try to grind to the upside though, as it looks like the EUR/USD pair is trying to roll over. That house German exports, which by extension helps the DAX itself. I think that we will probably continue to go to the upside, and even if we do pull back I suspect that the €12,500 level below is massive support. Ultimately, this is a market that I think will continue to find momentum, but I also recognize that the €12,750 level is massively important as we had seen so much noise over several days during the latter part of June.
Buying dips
I believe that buying dips will continue to be the case going forward, and therefore I think that the bullish traders out there will be looking at pullbacks as value. That’s exactly how I see it, because although it has been bearish as of late, the reality is that the longer-term charts are very bullish when it comes to the DAX. I believe that we will eventually reach towards the €13,000 level above, and now longer-term traders will be looking to trying to get to that level. If we stay above the €12,000 level, I believe that given enough time the buyers will always return. Below that level, the overall long-term trend has completely changed.
DAX Video 14.7.17
This article was originally posted on FX Empire