The DAX has broken out of its 5-year long channel, with the last time being early 2018. This time, however, there is substantial support found around the 14150 level. With the ECB speeding up their PEPP in order to quell rising bond yields, the DAX is fundamentally poised to continue moving up.
The ZEW Economic Sentiment comes out on Tuesday, which has previously led to a drop in prices over the following days in the past few months. Eurozone inflation data comes out on Wednesday, with YoY jumping from 0.2% to 1.4% from Jan to Feb. These factors may cause a sell-off into our buy zone around 14150.
The zone is a 4 touch resistance (there wasn't this kind of support in 2018) as well as the 0.618 level. Given there should be some time and space between the break and retest, orders should be built up there. This makes it a perfect level for a reversal/pullback into a continuation.
Entry: 14153
SL: 13953
TP: 14920
Happy trading:) follow for more.
The ZEW Economic Sentiment comes out on Tuesday, which has previously led to a drop in prices over the following days in the past few months. Eurozone inflation data comes out on Wednesday, with YoY jumping from 0.2% to 1.4% from Jan to Feb. These factors may cause a sell-off into our buy zone around 14150.
The zone is a 4 touch resistance (there wasn't this kind of support in 2018) as well as the 0.618 level. Given there should be some time and space between the break and retest, orders should be built up there. This makes it a perfect level for a reversal/pullback into a continuation.
Entry: 14153
SL: 13953
TP: 14920
Happy trading:) follow for more.