DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1)
The consolidation in front of the ECB continues with little real direction on the DAX in the wake of the initial strong upside breakout on Monday.
I discussed the tendency for the DAX to follow sharp upside breaks with a period of correction and this remains the risk as momentum indicators begin to tail back.
The daily RSI unwinding back from 70 could be a signal of a possible near term exhaustion.
The hourly chart shows how the market has pulled back from a new all-time high of 12,518 as momentum indicators have unwound.
FYI, the ECB meeting this afternoon could be a driver of elevated volatility (average true range is currently 132 ticks).
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