European bourses rose on Thursday, despite US equities sliding, supported by the weakening Euro. The EURUSD pair dropped to fresh three-week lows at 1.1750. Weaker euro usually supports German export-oriented firms.
At the time of writing, the DAX index was 0.35%, trading at around 15,740 EUR.
The index managed to crawl back above the 50-day moving average (the green line), but it lacks some bullish momentum. Overall, the medium-term trend remains neutral as the DAX has not moved anywhere since May.
The first selling zone is expected near previous highs at 15,800 EUR, while the key resistance remains at the psychological level of 16,000 EUR.
Alternatively, the support could be located at 15,620 EUR, followed by large buy orders near this month’s lows at 15,460 EUR.
The short-term outlook appears bullish as dips are bought, and the ECB keeps the printing press rumbling (so does the Fed). However, DAX needs to start building some bullish momentum soon or risk frustration in the bullish camp, potentially leading to profit-taking and a larger correction.