Friday, 6 January 2012

DAX & + EurGbp @ .8248....time for a bounce?

I still maintain my view on the DAX that we will see prices fall and this is the upper limit of the current range. A convincing break above the structure seen here at 6150 would make me review my short outlook. My position was stopped out in profit as per yesterdays post at 6143 and the gap was filled before we moved higher and to some degree I am disappointed with the outcome as I took less than 30% of the total potential profit but now we seem to have hit a wall here as can be seen on 3 different templates below. All eyes are now on US jobs data due soon.

And EURGBP below:

. You can see (in the lower time frame MT4 charts) the downsloping reaction line that has brought price lower and that now we are on the other side and also have made contact with the centre line of the fork shown in the daily chart. We are also underneath a reaction line that can be seen in the higher time frame MT4 charts. Price often falls through a reaction line but will be carried higher on the reverse side. The first partial trade objective is the underside of this RL at .8275
I do not know if this is a major reversal point and only time will tell but one of the major objectives has been achieved but I expect a 'fight' around the thick black centre line. Price rarely tips upwards and shoots off immediately after a long run down and expect to see a period of consolidation below .8265 and with support at the CL at .8244.

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