27, July 2016

Dax (a 4-hour chart)

Dax (a 4-hour chart)

General overview

The European Bonds Market showed low volatile trades. Traders waited for the Fed's meeting result which can change the current market dynamics.

Current situation

The index had a positive day on Thursday. The DAX gapped upwards and then rallied. The session high was marked at 10269. We believe that this is essentially a “buy only” market at the moment. The resistance is at 10350, the support stands at 10175.

The indicators recommend long positions. MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI is close to the overbought area which is a buy signal.

The index bounced from the 50-EMA and grew in the 1 hour chart. The 50, 100 and 200 EMAs are moving upwards in the 1 hour chart.

Trading recommendations

If the price fixates above the resistance 10350, it may continue the upward trend in the short term. The potential target is 10520. The potential downward rebound target is the support level of 10175.