DAX
We've had European indices out-perform compared to US indices, this would be due to international opportunities increase this has been executing for while a hedge against US, we look at US yields we are 5% roughly now that into consideration of going into US indices the need of making a return is relative high, now compared to the opportunities and growth of Europe! In my previous posts you can see FTSE100 that idea playing out well.
Now I am sharing the DAX chart as I think we could even re-test those highs that has been tested couple times, a break through key resistance where we are currently at the momentum is still on long side and targets would be 16250 areas and look that 1.618 Fib. However, if we break below 15150 areas and break out down side of this beautiful channel then I'd expect 50 EMA areas to be your target areas.
My thoughts overall, we really need pay attention to DXY where that's going to play further, daily close perhaps below of ranges we are at a pull back will occur but we do have NFP and if that is above let's say 220k and is strong number higher expect DXY to rally yields, and we also need to take not only NFP into consideration this week, let's not forget next week we have CPI. Take in all this important US data, and then we need think is market still pricing just 25 basis point hike or will we go 50, currently its pricing 25...Time will tell! I still think housing crises will increase and the automotive industry will face further issues.
Key tip: Don't forget to look at the bigger picture!
Have a great week ahead,
Trade Journal
We've had European indices out-perform compared to US indices, this would be due to international opportunities increase this has been executing for while a hedge against US, we look at US yields we are 5% roughly now that into consideration of going into US indices the need of making a return is relative high, now compared to the opportunities and growth of Europe! In my previous posts you can see FTSE100 that idea playing out well.
Now I am sharing the DAX chart as I think we could even re-test those highs that has been tested couple times, a break through key resistance where we are currently at the momentum is still on long side and targets would be 16250 areas and look that 1.618 Fib. However, if we break below 15150 areas and break out down side of this beautiful channel then I'd expect 50 EMA areas to be your target areas.
My thoughts overall, we really need pay attention to DXY where that's going to play further, daily close perhaps below of ranges we are at a pull back will occur but we do have NFP and if that is above let's say 220k and is strong number higher expect DXY to rally yields, and we also need to take not only NFP into consideration this week, let's not forget next week we have CPI. Take in all this important US data, and then we need think is market still pricing just 25 basis point hike or will we go 50, currently its pricing 25...Time will tell! I still think housing crises will increase and the automotive industry will face further issues.
Key tip: Don't forget to look at the bigger picture!
Have a great week ahead,
Trade Journal