DAX Forecast Today 23/8: Reaching Major Resistance
During our daily analysis of the German index, we noticed that the DAX is facing some difficulties in continuing its upward trend. This is not surprising considering the recent rapid increase in prices over the past two weeks. The €18,650 level has proved to be a significant resistance point, and many traders are closely monitoring this level.
Potential Market Scenario
The key question now is whether the market can continue its upward trajectory and if there are any factors that could drive this momentum. Speculation about a potential ECB rate cut in September has added some uncertainty to the market sentiment. As a result, the market is currently in a state of confusion.
Possible Pullback
A potential pullback seems likely, with the market possibly retracing towards the 50-Day Exponential Moving Average (EMA). The 50-Day EMA serves as a crucial indicator for momentum and trend followers, which could influence market movements. Even if the market breaks below this level, the €18,000 psychological support level is expected to attract buyers.
In the current volatile market environment, it is advisable to exercise caution in determining position sizes. This applies not only to trading the DAX but also to other financial instruments. As a result, position sizing has been reduced in our account to manage risks effectively.
If you are prepared to trade on our daily forex forecast, it is important to choose a reliable CFD stocks broker that meets your trading needs.
Source : www.dailyforex.com