DAX & CAC Technical Outlook: Trading Higher, but Not Without Challenges

DAX/CAC Technical Highlights:

  • DAX bounce nearing first test of resistance around 12600
  • CAC trading at confluence of resistance
  • Tactical considerations outlined

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DAX nearing first test of resistance around 12600

The DAX continues to trade higher in a sluggish manner, most recently taking out a steep trend-line off the record high, however; the first real test of resistance may not be far off around 12600, a peak carved out late last month.

If the market doesn’t trade much higher from here a lower-high could carve itself out in what may be a developing sequence of lower-highs, lower-lows starting in January. Overall, the price action for the DAX still looks corrective, with more work needed before the bounce can be considered anything more.

In the near-term, on weakness keep an eye on a pair of intra-day lows as both days resulted in solid swings higher once the DAX bottomed; 12177, 12020. A break below both will have another leg lower well in sight. Hold above and the chop higher can continue.


Article source: https://www.dailyfx.com/forex/technical/home/analysis/ger30/2018/03/13/DAX-CAC-Technical-Outlook-Trading-Higher-but-Not-Without-Challenges.html?DFXfeeds=forex:technical:home:analysis:ger30