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)

ADS Securities Risk Disclaimer

This article was provided by ADS Securities analysts.

Trading foreign exchange, foreign exchange options, foreign exchange forwards, contracts for difference, bullion and other over-the-counter products carries a high level of risk. Hence, it may not be suitable for all investors.

All opinions, news, analysis, prices or other information contained in this communication are provided as general market commentary. It does not constitute investment advice. Nor a solicitation or recommendation for you to buy or sell any over-the-counter product or another financial instrument.

Share Your Opinion, Write a Comment