Yahoo Finance DAX Index Price Forecast March 20, 2018, Technical Analysis
German traders struggled a bit during the session on Monday, selling off towards the €12,250 level. I think at this point, we are probably going to need to find value hunters to take advantage of this area. When you look at the hourly chart zoom down, you can see that we have clearly been trying to rally for some time, but there seems to be a bit of resistance near the €12,500 level, an area that of course has a significant amount of psychological importance built into it due to the large, round number.
DAX Video 20.03.18
Ultimately, I believe that the market will continue to chop around as we see so much in the way of noise in the marketplace, and of course headline risk. Ultimately, it’s likely that the market will find plenty of reasons to worry, not the least of which will be trade wars and fears of interest rate hikes coming out of the United States. Most people don’t think of it this way, but the Federal Reserve creates inflation for the rest of the world as the US dollar is the world’s reserve currency. This has a huge knock on effect for most markets, so it’s going to be difficult to get around a rising US dollar and when it can do to some peripheral markets. While it does make German exports cheaper, it also can cause chaos in the bond markets with higher interest rates causing borrowing costs to go higher for corporations around the world.
This article was originally posted on FX Empire
