OctaFX – The DAX declined sharply today after Volkswagen released auto sales for the month of September. In the month, deliveries dropped by 42%. This followed a similar report by BMW, Daimler, and Range Rover.
Auto Manufacturers Impacted by Sharp Declines
Auto manufacturers have been affected by the new ‘worldwide light vehicles test procedure’ which took effect on September. This measure has affected sales because manufacturers must obtain approvals for all car models they make.
They believe that the additional costs will reach more than 1 billion euros. The auto industry is the backbone of the German economy with companies like BMW, VW, and Daimler being some of the largest in the world.
GER30 Index Falls Sharply
The DAX declined today as problems in the auto sector increased. It reached an intraday low of £11,856. This was an important level because it was the lowest level since September 11. It was also the end of the inverted cup pattern that the index has been forming in the past few days.
Therefore, traders need to be careful before opening a long or short trade at this point. There is a possibility that the index could move above the £12,000 level, which is the 23.6% Fibonacci Retracement level as it adds a handle to the inverted cup and handle pattern.
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.