German DAX
US stocks and European stocks sold-off on Friday, but German DAX index is already recovering back to a 10837 high. Notice that the price bounces exactly from around 10522-10453 support area that we highlighted as very important reversal region. A move to the upside is now very sharp so it’s probably an impulse that will spike above 10837 and maybe to 10900, before the price turns lower for a new minor three wave retracement.
German DAX, 30 Min
USD Index
We are bullish on dollar as DAX trades higher, so be aware of higher prices on the Dollar index, especially as the latest pullback was made in three waves. That said, a break out of the channel resistance line and push above 99.13 should be tracked very closely as this will indicate a completed wave 4 and wave 5 in progress to 99.50.
USD Index, 1H
