Yahoo Finance German index falls significantly on Wednesday amid geopolitical concerns
The German index fell significantly during the day after geopolitical concerns started to take center stage again, as Pres. Donald Trump suggested that the trade war between the United States and China still is a possibility, so that of course has stock markets around the world falling, with the DAX being no different. I think that the €12,750 level underneath is going to be massive in its support, and I would be a bit surprised if we break down below there. The EUR/USD pair falling significantly has also made the idea of the DAX being boosted by cheap exports, so that will continue to put a bit of a bid in this market. Beyond that, the European Central Bank has made it clear that they were going to continue to be very loose with monetary policy, so that of course has money flowing out of bonds.
As I record this, I think that the market may attempt to break above the €13,000 level, and if it does I think we will then continue to go much higher, perhaps reaching towards the €13,500 level. Longer-term, I believe that the €15,000 level will be the target, and we could reach that level over the summer. This will be exacerbated by a falling Euro, but also could be due to agreements between the United States and China, as well as agreements between the United States and North Korea, as it will put a bit of a bid to risk appetite.
DAX Video 24.05.18
This article was originally posted on FX Empire
