The German DAX index pushed back from a diagonal resistance and the current impulse gives a chance of an adjustment of the last strong rally since early last week. Tomorrow, we expect NFP data, which may cause early caution and profits taking from long positions. This may affect the chart in direction to the south.
We remain cautious about possible intraday short positions at market opening at 10:00 GMT + 2. Such short positions are a little riskier because they are against the D1 trend but have a good risk / profit ratio.
On the H1 chart, DeM (14) has turned from a fairly redeemed market. Price around 11810 will play a support role and a first target from potential shorts, and a break below this level could lead to a 38.2 or 50% Fibonacci test of the latest DAX rally.
Positivism from a potential US deal China may be exhausted due to the strong upward pull.
Alternatively, for new long positions, we will wait for a correction of at least 33.2 Fibonacci.
Chart: Used with permission from Bloomberg Finance L.P.
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