GER30 - H1
The German indicator posts new record highs for fifth straight day, helped by sustained Euro weakness and dovish stance from the European Central Bank (ECB), highlighted by Ms. Lagarde's comments earlier in the week.
GER30 leaves 16,231 behind it, in line with recent analysis, opening the door for further gains towards mid-16,400s.
On the other hand, we grow wary for a pullback towards EMA100 (above 16,100), although a deeper correction towards 16,000 and the ascending trendline from October lows would, requires strong catalyst.
Potential risk factors could come from the COVID-19 situation in Europe as the holiday season approaches and reflation fears that could put pressure on the ECB for faster tightening.
Eurozone Consumer Price Index is due shortly and Ms. Lagarde is on tap later in the day - both with the potential to affect the indicators movement.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.