9 October, OctaFX – After falling initially, US stocks ended the day a bit higher yesterday. News of the Google+ service being hacked circulated with reports claiming that Google failed to notify the markets about the hack fearing it would trigger a large-scale investigation.
Later in the day, it was announced that Google had dropped out of bidding for a $10 billion Pentagon data deal.
Today, in Europe, the DAX is likely to see some weakness. Yesterday, Daimler, one of its biggest constituents reported that sales had dropped sharply because of the new emissions standards. The same will likely happen for other auto manufacturers like BMW and VW. Yesterday, the DAX declined by 165 points.
DAX Index Will Likely Continue to Fall
Yesterday, the DAX ended the day at £11,969. This was slightly higher than the intraday low of £11,890 but lower than the open. Today, with the growth problems among German companies, there is a likelihood that the index will continue to fall.
On the hourly chart, the index is now trading below the 50 and 100-day EMA as shown below. It is in line with the middle band of the Bollinger Bands. If the index drops today, traders should watch out for the £11,856 level, which will also mark the end of the inverted cup pattern as shown below.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.