There is a rounded bottom wedge formed and the range is narrowing. Since we had a series of higher lows and inability of bears to break below the 5800 level for months there is a case for a strong bullish rally.
DAX is reaching the 61.8% of the Fibonacci retracement of the latest swing down and the second half of the Pitchfork channel 12750 level. This level could provide a significant resistance for the upside.
If we get a daily close above the 1.17400 level the pair could go to 1.20000 level and this would be a formation of a left shoulder, or we could have a consolidation extension between the 1.15000 and 1.174000 level.
DAX is testing the upside confluence of resistance 12550-12650 zone. This zone is also the downside support zone. There is higher probability for the downside reversal here after the couple of upside days. Look at today daily close for the possible trade entries.