DAX Price Forecast – the German index pulled back on Friday

The German index fell during trading on Friday, as we continue to see a lot of global fear out there. This was exacerbated by the United States slapping tariffs on the Chinese again, which of course will be retaliated against. I think that the €13,000 level of course is important, but I think that the overall attitude of the market should continue to be bullish. I think that eventually we will see the market come back into the bullish mode, but right now I think it’s probably best to sit on the sidelines and wait for an impulsive hourly candle to get involved. Because of this, we could pull back even further, but I think that the €12,750 level will be the major “floor” for the short-term uptrend.

The longer-term target for me is still €15,000, and I think that the market will eventually get there but it may take some time. This could be exacerbated by the ECB stepping away from raising rates until at least the middle of 2019, which gives equities plenty of time to run. Even though they pulled back a bit from quantitative easing, they only cutting it in half, so there still very accommodative policies coming out of the central bank. The German index should continue to be bullish in general, and I think that the “buy the dips” attitude should continue to reign in this market as there has been so much in the way of buying pressure of the last several weeks.

DAX Video 18.06.18

This article was originally posted on FX Empire

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