DAX: Trades to Best Levels of the Year
- The DAX trades at best intra-day levels of year, looking for best closing prices
- Likely supported near 10700 on a short-term pullback
- Eyeing 10860/~11000 next on further strength
The last time we discussed the DAX it was trading at the underside of the trend-line off the June lows and horizontal resistance near 10700 formed over the course of the prior two weeks. Since then, the market has extended above both forms of resistance, and is currently trading above the August/September double-top towards new year closing highs.
In the short-term, even if new year highs can’t be maintained there will still likely be support around 10700, which is also where the cross-through trend-line off the June lows lies. The trend-line off the June lows was broken on a couple of occasions, and while it passes through a lot of price action the market has still responded to it in recent weeks, so we will continue to view it with some importance.
Ahead at 10860 lies the swing high created on Dec 29, and beyond there we will have to look to 11k (psychological level) and a top-side trend-line (~11050) spanning over the April and August peaks.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.