DAX: New Highs Around the Bend
- DAX maintaining its bullish posturing
- Support and resistance outlined
- Limited market moving data due out this week; Euro-zone CPI, FOMC minutes tomorrow
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On Friday, we looked at the DAX and said some weakness could set in over the very short-term but overall the index was supported on any decline it may experience. Weakness turned out to be very, very short-term with a swing low forming in less than a couple of hours of posting. In the weekly forecast, the focus for a breakout was on 11848 (above there now) and then the real level of interest coming in at the Jan 26 high of 11893. The market is supported by the December trend-line and Friday low at 11694.
The market could find itself ping-ponging around before making a move in either direction, but we continue to run with higher over lower when all is said and done. A breakout above the Jan high will quickly bring into play the levels from 2015 we’ve discussed on numerous occasions – 11920 and 12079 would be first up.
On the data front, tomorrow at 10 GMT Euro-zone CPI for Jan is due out; seems likely it will be more of an FX/rates-mover than equities, but noteworthy nonetheless for the very short-term minded trader. Otherwise it’s a fairly quiet week. FOMC minutes from the Jan/Feb meeting are also later in the day tomorrow, while the market is closed, but could have an impact on the open Thursday should U.S. equities experience a big move. (Full econ calendar here.)
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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.