Technical outlook:
The daily chart presented for DAX clearly indicates a potential beginning of the bearish trend either from the current levels or from 12,900 levels. As projected here, the drop between January 23 and March 26, 2018 unfolded into 5 waves labelled here as the wave 1 termination point. Also note that like its counterpart FTSE, the DAX has also broken below its 2016 trend line support. The subsequent rally has not yet managed to reach the back side of support turned into resistance trend line, but is facing strong resistance at the Fibonacci 0.382 levels itself. Looking into the wave counts, the counter trend rally seems to have carved out into 3 waves a-b-c as labelled here. Whatever the case, the DAX is well poised to drop lower from the current levels or 12,900 (Fibonacci 0.618) resistance going forward.
Trading plan:
Sell 50% positions now at 12600 levels, remaining around 12,900, stop above 13,500 and target remains open.
Fundamental outlook:
Watch out for the German consumer Price Index and US PCE Core at 08:00 AM EST and 08:30 AM EST, respectively.
Good luck!The material has been provided by InstaForex Company - www.instaforex.com