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Fundamental analysis

Will German Dax Bearish Trend Continue?

ADS Securities | Oct. 18, 2018
Will German Dax Bearish Trend Continue?

As seen in the chart, the index is bearish in a bearish trend. Should traders expect the downtrend to continue? Gain insight into the following German Dax index technical analysis.

18 October, ADS Securities – The German DAX is poised to open mixed on Thursday amid renewed concerns about US-China trade and expectations of a faster pace of US interest rate hikes from the Federal Reserve.

Brexit uncertainty may also keep investors nervous after EU leaders are calling off a summit on the Brexit in November due to the lack of progress. European markets closed slightly lower on Wednesday as auto sales slumped in September and a no-deal Brexit loomed.

In the economic events calendar there's Germany wholesale price index at 07:00 GMT in addition to US reports on weekly jobless claims due later in the session.

German Dax Technical Analysis

From a technical standpoint, the trend is clearly bearish, showing an intact downtrend in the short and medium term.

The 200-period moving average is acting as a dynamic resistance and the index might pull back to retest it from time to time during the course of the next few hours, until we finally retest a major support at 11460. The RSI looks bearish suggesting price will decline further.

Support: 11460 10785

Resistance: 11910 12185

Chart (H1)

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