GER30 - H1
Broader market sentiment took a nose-dive, after Austria announced lockdown measures to restrain the spread of the coronavirus. This sent investors to the arms of safe-havens such the US Dollar and Japanese Yen and away from stock markets.
The German indicator reacted lower on the news, with the Covid situation in Europe being a risk factor about which we had warned a couple of days back, as well as for the potential of corrective moves last week.
This led to a breach of the EMA100, but initial drop is contained above the ascending trend-line from October lows (at 16,100), with the relevant Euro plunge, helping towards this direction.
As long as risk-off persists, this support can give way and expose the GER30 to sub-16,000 moves, with the first noteworthy support located at the 15,950-20 area.
If the current levels hold, and investors manage to shake-off the Covid-jitters, then they can push for fresh record highs (16,302).
In any case, technical approach is of lesser importance at this stage, as risk-trends are the main driver.
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.