(MENAFN- Daily Forex)
The dax has pulled back a bit during trading on Thursday, as we continue to see a lot of resistance in this same area. The 14,500 area extends all the way to the 14,750 area, and as a result, it should not be a huge surprise that we have failed in this general vicinity. Ultimately, I suspect that it is only a matter of time before we must make a bigger decision, as to whether we can continue the overall uptrend, or if the market is finally going to become too heavy.
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I break down below the 14,000 level, I thought at that point it would confirm the market falling over again and could send the market down to the 200-Day EMA, possibly even the 50-Day ema which sits just below it. Speaking of which, we are on the precipice of a potential“golden cross” when the 50-Day EMA breaks above the 200-Day EMA. In that scenario, a lot of longer-term traders will get long as it is a very bullish sign.There Are Hardest Times to Trade
Keep in mind that the DAX is the blue-chip index for the European Union, so it does make a lot of sense that it could lead the way as to where the other markets go. If we break above the 14,750 level, then I think the DAX takes on the 15,000 level. Anything above there would be extraordinarily bullish. There are a lot of concerns around the globe, and that comes into play when it comes to the DAX as well, as it is a major export economy. The German industry is well known for exporting heavy industrials, so if there is a lack of growth, there's probably going to be a lack of demand.
On the other side of the equation, there is a lot of talk about the CB loosening monetary policy going forward, so which could lift exports. However, you also must keep in mind that there is a lot of concern out there when it comes to energy problems, so ultimately that could be a major problem for bullish momentum. I think at this point, we continue to see a lot of noise, but right now we are on the precipice of trying to figure out whether we can break the next barrier. These are always the hardest times to trade.
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