Yahoo Finance DAX Index Daily Fundamental Forecast – March 13, 2018
The DAX index carried on with the momentum generated since last Friday and also with the help of the improvement in the overall risk sentiment around the globe. But during the second half of the day, we found that the momentum began to waver and the index closed away from the highs and it is clear that it is going to be a big challenge for the bulls to push the index much higher.
DAX Consolidates Gains
The DAX had been buoyed by the strong NFP data from the US on Friday. Though the DAX does not have much to gain from the strong employment data from the US, the strong data helped the overall risk sentiment to improve slowly and thi helped the major stock indices around the globe to move higher since then. This helped the DAX to carry the momentum generated during the previous days when the tariff plan from the US was watered down.
The DAX continued higher when the markets opened yesterday and the index moved through the 12400 region but as the index came near the highs of the range, it was clear that the bulls would not be able to continue the move any longer. This led to a weakening across the board which was more of a correction in the large scheme of things and we can expect this correction to continue in the short term as the index consolidates and ranges.
Looking ahead to the rest of the day, there is not much by way of data from Germany or the Eurozone and considering the fact that the overall trend in the DAX seems to be one of consolidation and ranging, we can expect more of the same to happen in the short term as well as the investors await direction. That is unlikely to come anytime soon with the index under pressure from the threat of an end to QE and so we will have to wait and see.
This article was originally posted on FX Empire
