- It's easy to see that the buyers have taken over again, as we are well above the €18,650 level.
- This is an area that previously has been important more than once, and the fact that we have broken above there so significantly is, of course, a very bullish sign.
Ultimately, the market could go looking to the €19,000 level, which of course was near the massive swing high. The market had recently bounced from the 50 day EMA and of course an uptrend line. So that all comes together for a very bullish look. At this juncture, stocks had a very strong day during the trading session on Friday, as the shock of the CPI numbers on Thursday seems to be, nothing short of the complete reversal of that fear.
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So, with that being said, the market is likely to continue to see plenty of buy on the dip attitude due to it is a value proposition. We are in an uptrend and there's no point whatsoever in trying to short a market that's in an uptrend. In general, this is a market that has quite a bit of strength behind it as the Dax is of course the main driver of the European indices across the board.
The DAX is an indicator
So, pay attention to this one even if you are not trading the Dax itself. If you are trading something else in Europe, it'll give you an idea as to where risk appetite is going. The DAX has been a strong player in the markets for some time, and I think that we will continue to see a lot of momentum being shown. This market could continue to be one that drives what happens in places like the AMX in Amsterdam, the MIB in Italy, and the CAC in Paris. If the DAX rises, it is likely that other indices will see “hot money” flowing into them looking for more returns.
I have no interest in shorting the DAX, as well as any other index at this point in time. The stock markets continue to run on a lot of FOMO, and Germany won’t be any different at this point.
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