The DAX tried to rally on Monday but has failed again as there are so many cross-currents.
DAX
The DAX initially tried to rally during the trading session on Monday but then turned around and fell pretty significantly. We are hovering around the 50-day EMA, which of course, is an indicator that a lot of people watch.
Top Regulated Brokers
If we were to continue to drop below the 24,500-euro level, then it's possible that we could send this market down to the 200-day EMA. A turnaround at this point in time is possible and, quite frankly, it's something that I'm looking for, but keep in mind that yields continue to cause a persistent bit of hesitation in indices around the world, Germany and the United States.
And ultimately, despite the fact that German rates have dropped a bit, they are still somewhat elevated. If we rally from here, I think the 25,000 level is a potential target.
Technical Support and Macroeconomic Headwinds
There has been a bit of a tech rebound earlier, but it looks like that's fallen right off. There are problems with the automotive stocks in Germany at the moment, and the selling pressure is mainly driven by the fact that the automotive sector is talking about cutting up to 100,000 jobs in that country, and that suggests trouble ahead.
German equities are fighting a battle on 2 fronts right now. The recent 15% baseline US tariffs are hammering export volumes, particularly machinery, chemicals, and autos. At the same time, ongoing geopolitical concerns in the Strait of Hormuz are keeping a floor under energy prices, despite the fact that they have fallen, which has a major influence on some of the industrials.
With that being said, I think we continue to see a little bit of noisy behavior, but ultimately, I do anticipate that the value hunters continue to buy short-term dips.
Ready to trade the daily analysis & predictions? We’ve made a list of the best online CFD trading brokers worth trading with.