DAX meteoric rise to the 12.000 threshold is simply courtesy of ECB’s bond-buying program leading to Euro devaluation, which in turn is positive for German exports. German government bond yields are at historical lows. The 10-year bund yield is 0,25%! As we are in uncharted DAX territory, technical analysis cannot provide “reliable” levels where the current rally could stop. It all depends on politics and liquidity now. Of course, US investors exchanging their DAX profits from Euros to USD realize no gains. With EUR/USD trading @ 1.05 it seems reasonable to guess that parity is the next stop.
DAX-30, daily chart:
Chart courtesy of investing.com. http://investing.com
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