DAX: Inverted Head and Shoulder Pattern

We have a inverted head and should pattern completed, with price breaking above the demand zone. We expect price to face some resistance at the 10116 level which confluences with the 1.618 fibonacci extension. Aggressive traders can look for a shorting opportunity around these region targeting a 61.8 retracement back in the demand zone (9550); and from there look for a potential opportunity to buy into it targeting further upside at 10855.

OUR DIRECTIONAL BIAS FOR THE WEEK
- AUD bullish (currently in a risk-on environment, RBA datas were mainly positive for the past week) - watch out for Chinese data
- NZD neutral (GDT Price Index was positive for the first time in 2016, but we remain cautious over the outlook from RBNZ) - watch out for RBNZ Rate Statement
- CAD bullish (GDP came in positive last week, oil prices have been stabilising) - watch out for BOC Rate Statement and Unemployment Rate
- EUR bearish (fundamental of EUR is still weak) - watch out for ECB Press Conference
- CHF & JPY neutral (recent market sentiment is shifting towards risk-on environment) - watch out for JPY GDP
- GBP bearish (fundamental data on GBP has been weak consistently) - watch out for Carney Speech and Manufacturing Production
- USD neutral (recent economic datas have been mixed) - no key risk event this week

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