DAX Price Index Forecast August 7, 2017, Technical Analysis

The German index rallied a bit during the day on Friday, and then exploded to the upside after the jobs number came out of the United States. This is because the EUR/USD pair sold off, and that makes German exports cheaper. That helps with the DAX, and with this being the case, it makes sense that longer-term traders have jumped into the market as well. I think that short-term pullbacks could offer buying opportunities, and therefore I look at pullbacks as an opportunity to get long yet again. I have no interest in shorting, least not until we break down below the €12,000 level, which I see as a major support level in this market. If we were to break down below there, the market should then go looking at much lower levels and it would probably break the uptrend.

Buying dips

I believe that prudent investors are buying dips as the uptrend has been so strong, and I think that the market should then go towards the €12,500 level above, and then eventually the €13,000 level. The DAX should continue to strengthen due to the strengthening European Union numbers, and of course the currency headwinds are starting to dissipate a bit as well. I like buying the DAX, and I believe that the German index will continue to lead the rest of the European indices higher as well.

DAX Video 07.8.17