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16.06.202315:28 Forex Analysis & Reviews: Monthly DAX analysis.

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Exchange Rates 16.06.2023 analysis

Black line -resistance

Red line- bearish RSI divergence

Green line- support trend line

DAX is trading at new all time highs. In previous posts we noted the technically trend remained bullish and bulls were safe as long as price remained above the green upward sloping support trend line. In the Daily chart the RSI continues to provide bearish divergence signals. This is only a warning. Upside potential we believe is limited to a move up to 16,500 for the near term. There are increased chances of a pull back at current levels. However there is still no reversal sign given by the market.

Exchange Rates 16.06.2023 analysis

Red lines- monthly bearish RSI divergence

Zooming out and watching the monthly chart in DAX, we observe a lower high in the RSI, to provide the third bearish divergence on a monthly basis. Of course as can be seen above, the bearish divergence should not be used as a reversal signal. Price continues making higher highs. The bearish divergence is here to increase our awareness regarding a weakening up trend. The RSI is here as a complimentary tool. We need to see price break key support levels in order to call for a major reversal. On a monthly basis DAX has the potential to move towards 16,900, However a potential pull back could push the index at least towards 14,700.

Alexandros Yfantis
Analytical expert of InstaForex
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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