DAX flirts with ATHs again

After breaking out of the triangle formation a couple of days ago, the DAX is now flirting with the previous record hit in early June at 24490. With Trump's tariffs uncertainty at the forefront again, there is a possibility we could potentially see a double top or a false break reversal formation here, so do watch out for that. However, we will continue to focus on the long side until we see an actual, confirmed, reversal. With that in mind, dip-buying remains the preferred trading strategy.

Key support levels to watch:

• 24,278, marking yesterday's high
  
• 24,176, broken resistance from last week
  
• 23,927, the base of this week's breakout
  

The technical picture would turn bearish in the event we go back below the support trend of the triangle pattern.

In terms of upside targets,

• 24,750, marking the 127.2% Fib extension of the big drop from March
  
• 24,890, marking the 127.2% Fib extension of the most recent drop from June high
  
• 25,000, the next big psychological level
  

By Fawad Razaqzada, market analyst with FOREX.com