Yahoo Finance DAX Index Consolidates, Looking to Move Higher
The DAX index is showing signs of nervousness as it begins to trade at the top of the range and we could see some weakness at this point of time. The index traded within a tight range during the course of the day yesterday and it is likely that we could see the consolidation continue for today as well. We could also see some sort of a correction.
Index Looking Higher
But we believe that the index is still in the grip of the bulls only which should mean that the correction should be short lived and we should see the risk sentiment getting a boost all around the world and this would mean that there i a strong likelihood that the range would break in due course of time. The eurozone inflation came in lesser than what was expected but that did not seem to have too much of an impact on the index over the last 24 hours. In fact, we are now in a situation where we can say that any weak data is likely to be met with cheer as far as the DAX is concerned.
This is due to the fact that any weak data would only continue the trend of the weak data that we have been seeing from the Eurozone over the last several weeks and with each such data, the job of the ECB, as far as the tapering and ending of the QE is concerned, would only get more and more difficult. This is going to be a huge advantage for the index bulls and this should help the prices to be pushed higher due to the anticipation that the QE would continue for a lot more time than what was originally anticipated and this would help the buy side in the index.
Looking ahead to the rest of the day, we do not have any major economic data or news from the Eurozone or Germany and so we can expect some consolidation for now.
This article was originally posted on FX Empire
