What’s next? – DAX 19.06.17

The DAX index futures were higher on Monday pre-session hours, adding 0.72 percent to trade at 12,826 points as of 07:08 GMT, kicking off a new week with renewed bullish impulse.

As there are no relevant macroeconomic events scheduled in the day, we expect an upward consolidation that could serve to build an even stronger buying momentum.

The German index was basically unchanged on Friday, after descending a few positions in the week in reaction to the Federal Reserve interest rate decision and its hawkish rhetoric.

The index continues to point at the 13,000 mark, although last week it could break it and corrected downwards. It seems that the 12,750 and 12,850 are proving solid support for the index, preventing a retreat to 12,600 points.

The immediate target is now around the 12,900 level. The index would have to prove its bullish nature to gain enough traction and break the 13,000 psychological level.

However, continuing failure to cross 12,900 would increase bearish positioning in the near term. Sellers would speculate on new failing intends to break the key resistance.

The data front this week looks quite weak, with preliminary manufacturing and services PMI indexes due on Friday as of 07:30 GMT.