Volatility has been minimal so far Friday, and investors are awaiting today's Jerome Powell speech about monetary policy. At the time of writing, DAX was trading marginally higher, seen at around 15,780 EUR.
The index is currently testing the first important support at the short-term uptrend line. If the level near 15,720 EUR gets broken to the downside, the short-term outlook might switch to bearish. Since volatility is expected to rise notably after Powell's words, another strong support could be found way lower - at 15,330 EUR.
DAX needs to stay above it for the medium-term bullish trend to remain intact. A failure to defend it could lead to further losses toward 15,000 EUR.
Alternatively, DAX must close above the psychological level of 16,000 EUR to confirm the long-term uptrend.
Fireworks should start at 4 PM CET today, but we advise not to take large trades ahead of his speech and wait until the situation is more clear.
