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MENAFN- Daily Forex)
The German DAX fell again on Thursday, as it looks like we are still playing the geopolitical noise game. At this point, I still favor the upside in the DAX going forward.
The German DAX fell pretty significantly during the trading session on Thursday, reaching the 24,500 Euro level as an area of interest and this is an area that should be support. In fact, it has offered support recently, but before that it was significant resistance in a market that had been consolidating.
We broke out from there, pulled back, bounced a bit, but now we're back there again. So, the question is: will the backup to this level offer a nice buying opportunity?
If we rally from here, the 25,000 Euro level is likely to be a scenario were clearing that probably brings a lot of FOMO into the market. Keep in mind that the DAX continues to see a lot of fiscal stimulus coming out of the German government and that should lift some companies.
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But we have other companies dragging down the DAX such as Bayer, which is a company that might struggle with the idea of international tariffs out there, especially the US tariffs.
Ultimately, this is a market that's also hanging around the 50-day EMA, which of course is a technical indicator that a lot of people will watch and so far, at least, it looks like a technical breakout of the previous consolidation area.
This is a market that I think continues to see a lot of volatility and choppiness, but over the longer term, I anticipate that this market probably goes quite a bit higher. The 26,000 level above is my target, but we need to turn things around rather quickly or we may find ourselves in trouble with a failed breakout.
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