(MENAFN- Daily Forex)

• The German index rally on Friday to approach the crucial €24,500 level, an area that has been significant resistance more than once.
• Because of this, the market looks as if it is trying to do everything it can to build up the necessary momentum to break out, as we continue to see general stubbornness when it comes to bullish pressure.
• However, it's also worth noting that the €24,500 level has been very difficult to get beyond.

Technical Analysis

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The technical analysis for this market is obviously bullish, but as of late we have been somewhat sideways which makes a certain amount of sense considering that we are in the middle of summer, and of course there are a lot of questions when it comes to trade agreement deals, the global economy, and multitudes of other things such as the war in Ukraine, so therefore we have to be very cautious about getting overly exposed to risk.

Even if we do pull back from here, the €24,000 level is not only a large, round, psychologically significant figure, but it is also where we see the 50 Day EMA hanging around, and that of course is a sign of potential technical support. Anything below that level opens up the possibility of a move down to the €23,500 level, which has been supported more than once.

All things being equal, I'm still bullish on the text, and I do think that it's probably only a matter of time before we break out. If we do get that break out, the“measured move” is for €1000, meaning that we could go to the €25,500 level over the next several weeks. If we were to break down below the €23,500 level, then it's possible that we could drop to the 200 Day EMA, but as things stand right now, I'm not looking for that to happen. I just keep that in the back of my mind as a potential turnaround.

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