Daily Timeframe: Yesterday saw the DAX witness a further increase in value, consequently closing for the day just above a major daily swap level visible at 9790, and as a result likely clearing the path north for prices to test a minor daily swap level seen at 9896. This level now remains a key obstacle to a move towards the daily seen above at 10048-10007.
4hr Timeframe: Like the , the 4hr timeframe shows much the same thing, only in more detail. Price positively closed above 9790 (daily swap level) and now has to contend with potential selling opposition from a messy area of supply (green circle), which is effectively the same area as the aforementioned minor daily swap level.
The spike seen marked with a blue arrow at 9872 informs us that supply could indeed be weak here which adds extra weight to a potential move north.
With all of the above taken into consideration, we’d be comfortable buying with lower-timeframe confirmation around the 9800 mark just above 9790, targeting the 4hr above at 10038 (seen within the aforementioned daily ). Of course, this is all NFP result dependent. A break below 9790 on the other hand would effectively remove the metaphorical floor from below the DAX and likely see price plummet down towards a trendline (8351 – 16/10/14).
Current buy/sell levels:
• Buy orders: 9800 (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).