Good morning traders and welcome to the DAX TECHNICAL ANALYSIS 01052015!


So we are closed today, resuming normal hours on Monday. That gives me a chance to get my shop in order again and start posting up my trades again next week.

Bunds continue to make headlines with their slump lower which has been affecting the EUR but also there was some important news coming out of the Eurozone with the M3 money supply growth rising for the first time in a while showing increasing bank and private sector lending. A more upbeat outlook for the Eurozone.

After the ECB’s comments regarding long term inflation outlooks the story of Taper-Tantrum has re-surfaced. Perhaps far too early to even consider that.

So looking at the Dax, we are currently in a short-term bearish trend and the weak US Dollar has likely contributed to a decline, because of the trade links between the two countries. This is now the first major correction of the year.

It is really difficult to call tops and bottoms, but assuming that we are continuing the long term bullish trend, which is highly likely, assuming that this is a typical correction of between 8-15%, which is highly likely, assuming that the QE program continues and the US dollar continues is strength into Spring, which is likely, then I am watching an opportunity to buy in again between 10750-11100. Take a look at the daily chart below, the 10% correction level is the more likely one to watch because this also acts as the bottom of the longer term trend channel from last year and there is the .618 fib from the Feb lows.

So I will be taking the day off tomorrow, good luck trading and I will see you on Monday. Thanks for reading the DAX TECHNICAL ANALYSIS 01052015.


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