- The DAX 30 is trapped within the narrow range of 9695 to 9931 and may break either way.
- There are no market moving events on deck today.
The DAX 30 (FXCM: GER30) is trapped in the narrow range of 9695 to 9931 and may break either way.
A breakout to the upper barrier at 9931 may take price to the January 13 high of 10,164, while a breach to the lower limit of 9695 may be the beginning of a bearish trend, which may take price to the psychological level of 9500 and then to the February 29 low of 9336.
The reason why I am hesitant to call a reversal in the DAX 30 is due to the overall bullish trend since February 11, which means that traders may see a pullback as a buying opportunity.
Also adding to this bullish sentiment, is Friday’s U.S. Non-Farm Payroll increasing by 242k new jobs in February, beating a Bloomberg News projection of 195k, while wage growth moderated and the labor force increased. This is a good outcome for stock markets and does not suggest that the DAX 30 is currently in need of rolling over.
German Factory orders increased by 1.1% YoY vs. a 0% projected by a Bloomberg News poll, which is a third reason to assume traders will see a pullback as an opportunity to buy.
There are no market moving events on deck today.
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DAX 30 | FXCM: GER30
Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano
— Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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