Hi guys DAX retraced back up to the price level which I wanted to see for another short opportunity. Looking at the daily chart it would however make more sense if that move plays out tomorrow. However at 4H we already have a nice signal candle in the chart.
In the session tomorrow a clear resistance area will be the focus for the DAX. I am expecting a 3-Wave corrective move into the area. Should we then see the momentum flattening out and reversal signals in the candle stick priceaction a specialtive short position could be worth taking.
Where are we in the Big Cycle? Can the central banks prevent the crash? To me it looks like we are in one big complicated messy expanding flat. Economic deterioration pushing the markets down, while fresh central bank dollars pushing the market up.
AUD/USD could reverse again to the upside giving us a nice longswing entry as an ABC flat correction could finish soon. However please look carefully in the price action 1H or 4H since we don't have a valid reversal signal there yet.