What’s going on with the DAX? Despite strong NFPs, no new highs
Source: Economic Events 10 February 2020 - Admiral Markets' Forex Calendar
After closing January below 13,000 points, driven mainly by fears and developments around the Coronavirus which pointed to increasing risks of a widespread pandemic, the DAX bulls once again took control by the end of last Tuesday once fears began to wane, bringing the all-time highs around 13,640 points into our focus again on Monday.
What's certainly interesting is the mixed reaction among market participants to Friday's solid Non-Farm Payrolls regarding the DAX30 CFD. NFPs in the US increased by 225,000 in January, following an upwardly revised 147,000 rise in the previous month, beating market expectations of 160,000.
Bulls weren't capable of building strong momentum, making it possible for the German index to correct some of its gains of the last week with a potential target being found 13,380/400 points and slightly lower around 13,300 points.
Still, the mode stays bullish with the main focus on the upside lying on 13,640 points, the current all-time high.
If we rather sooner than later make it to new all-time highs and break above 13,640 points, targets on the upside can be found around 13,800 and 14,000 points.
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between October 26, 2018, to February 7, 2020). Accessed: February 7, 2020, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of the DAX30 CFD increased by 9.56%, in 2016, it increased by 6.87%, in 2017, it increased by 12.51%, in 2018, it fell by 18.26%, in 2019, it increased by 26.44% meaning that after five years, it was up by 34.2%.
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