DAX30 bulls in control of the action again – 13,000 here we come?

By Admiral Markets

Source: Economic Events July 6, 2020 – Admiral Markets’ Forex Calendar

After the DAX30 consolidated between 11,950 and 12,370/400 points over the last week of trading and bears failed right on Monday with their attempt to push the German index out of the range on the downside, bulls captured control.

Last Thursday, bulls succeeded in their attempt to break higher, driven and supported by the news that Pfizer and Biontech announced positive results in regards to the search for a Covid-19 vaccine (announced on Wednesday) and solid US labour market data.

Non-Farm Payrolls came in at 4.8 million for June against 3.23 million expected, May data being revised higher from 2.509 million to 2.699 million and the unemployment rate dropping to 11.1% from previously 13.3%.

While the BLS admitted another “survey error” after March, April and May which resulted in an artificially lower unemployment rate, markets seem to completely ignore the obviously manipulated and politically driven environment.

Technically, for the start of the week, further gains in the DAX30 are to be favoured, a first target on the upside can be found around 12,750 points, above and in the days to come a next target can be found around 12,900 points.

A solid support and potential long trigger can be found around 12,370/400 points, last week’s breakout region:

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between June 16, 2020, to July 3, 2020). Accessed: July 3, 2020, at 10:00pm GMT

Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between March 20, 2019, to July 3, 2020). Accessed: July 3, 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%.

Check out Admiral Markets’ most competitive conditions on the DAX30 CFD and start trading on the DAX30 CFD with a low 0.8 point spread offering during the main Xetra trading hours!

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