Whilst DAX takes a quiet nap at the all-time highs Euro bears reached a record net-short exposure last week
The trend is clearly bullish across most timframes as price hovers above the 20 day MA. Thursday produced a Bullish Pinbar above 11,600 which may well have marked the end of the current correction. Whilst we remain below MR2 there is potential for a pullback within Thursday’s range to allow a buy-limit order, with a stop below 11,600 to assume bullish continuation.
Whilst it remains within a suspected correction it should also be noted that the range is relatively small and simple. This favours a bullish resumption sooner than later but we could use a break below 11,600 as signal for a deeper and more complex correction, with likely support around 11,200.
On an observational note, whilst DAX takes a quiet nap at the all-time highs Euro bears reached a record net-short exposure last week. A weaker Euro tends to have a positive impact on European stocks so we can assess the EURUSD downtrend to help provide confidence of further upside on DAX or other European Indices.
Eurozone Flash CPI data is out this weak (inflation) which leaves an upside surprise for DAX if it comes in on or below the -0.3% consensus.