- The technical trend of the DAX 30 is bullish above the March 10 low of 9397.
- Traders may see a pullback to the 9649 to 9807 range as an opportunity to add to their bullish exposure.
- Chicago Fed Nat Activity Index and U.S. Existing Home Sales on deck today and forecasted at 0.25 and +2.9% MoM respectively (Bloomberg news poll).
The DAX 39 is sluggish, but as long as price trades above the March 10 low of 9397 the overall trend remains bullish. The bullish trend implies price may continue to drift higher over the coming days ahead and may reach the January 13 high of 10,166, followed by the January 5 high of 10,395.
The bullish trend may also imply that some bullish traders may see a pullback towards the 9397 level as on opportunity to add to their bullish exposure. The potential range where the DAX 30 may find support is the 9649 to 9807. These two levels are derived using the Fibonacci retracement tool, with the March 10 low of 9397 and the March 17 high of 10,069 used as reference points.
In the scenario that the DAX 30 does not find support in the above mentioned range and instead slips below the March 10 low of 9397, the trend will likely turn bearish. Here, price may reach the February 24 low of 9122, which is the next level where price would find support.
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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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