Good morning traders!

Once again, let’s get straight into it.

Yesterday I mentioned that I am looking for a test and hold of the pullback zone highlighted on the daily chart. I mentioned that we are likely to see some bearish activity as we head toward those levels again and we had a fairly strong bearish day yesterday after seeing a spinning top doji on Wednesday. So there could still be some opportunities to ride some short-term short positions into that zone, but from there I am looking for a reaction and perhaps going long.

It is still widely expected that the ECB will extend QE beyond March 2017, amid concerns about the lack of upward trend in core inflation, although perhaps no decisions will be made in the upcoming meeting (September). Risk sentiment has certainly improved recently, despite Brexit, suggesting we are ready to take advantage of the calmness before the real knock on effects are felt. European equities are breaking their ranges to the upside. These all support my more medium term view.

Dax Support & Resistance

Daily R2 10675
Daily R1 10590
Daily Pivot 10528
Daily S1 10444
Daily S2 10382
200 Day EMA 10152

In all honesty, the market is not friendly at the moment, so until we resume a trend, it may be best to stay out.