Just after my last post, DAX30 Index has emerged to new highs and meanwhile reached my projected price target at 11450 points. Whereas EURUSD has plunged further and printed new 13-year (!) lows in the 1.0350 area. Despite the new highs along with the slowing momentum in DAX30 Index, I see further short-term upside to 11’775 area which is equal to the Fibonacci trend extension (9’214 / 10’495 / 11’775). But I would not chase upside too aggressively, rather (if even) trade little short-term long plays with tight stops. When looking on the intermarket picture, for instance EURUSD; it does not look too promising on the short-term side for further upside in DAX30 Index. Despite the new lows in EURUSD, momentum is slowing down and is not (yet) confirming the new lows which calls for some short-term bullish consolidation. Furthermore, EURUSD is about to complete its 5th impulsive wave which has the equal height as the 1st wave (equality). Target is around 1.0350 which is also along the support line of the channel which emerged in August 2015 (color: turquoise).
Conclusion: Intermediate upside targets in DAX30 Index and downside targets in EURUSD reached. Remain on the sidelines until further notice. Short and choppy road ahead.