The German stock market index (DAX) is in an ascending wedge. Typically, these are reversal patterns that end up reversing lower (descending wedges are bullish reversal patterns). Although I don’t trade the German DAX it is important to me as a currency trader so I know where to strategically trade.

A sustained break below 11,200 could target the 10,260 level which represents the 38% retracement of the move from October lows to last weeks highs.

Blake Morrow

Chief Currency Strategist, Wizetrade