The DAX has approached a potential significant cluster of resistance. As we can see by the weekly chart, the recent ascent to 10470 has been met by significant selling pressure. This accumulation of resistance points have thus far proved to materialise, although, as with any market, resistance is only resistance until it is no longer is. What we can witness is a test of material levels for example the 61.8% retracement of the fall from latter November 2015 comes in at 10389, which also coincides with previous highs of mid April 2016 and the swing high of the week of the Brexit vote. In addition to the Fibonacci level we have also witnessed a test of the down trend line from the highs of the market, potentially strengthening this down trend. Moreover price has test the underside of the uptrend line from 2011. This confluence of resistance on the weekly chart may need to further be confirmed.



At present the daily chart shows that price may of found support at 10103 which is a past Fibonacci level, in addition the 200 SMA comes in at 10079 should this hold as support we may see some upside which in the short term could be capped by the confluence of resistance mentioned earlier. 


Since my last post on EURUSD we have seen the EURUSD breach the 38.2%  retracement of the Brexit move to then breach the 50% and come to test the 61.8% retracement. This potential strength in the EUR could be feeding through to the weaker DAX we have been witnessing, however this may be too premature to correlate. Currently EURUSD has retreated from the 61.8% retracement level of 1.1228 in which we could see a short term consolidation of this strong rally, with a support zone coming in between 1.1168/1.1181. Should this rally continue potential firm resistance could come in at 1.1265 which is the 50% retracement of the decline from May and also a test of the down trend line. Should price fall below the potential support zone short term support may come in at 1.1110


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