GER30 - H1
Risk-aversion had hit markets on Friday, after Austria announced its fourth national lockdown ahead of the holidays, as the pandemic situation seems to be worsening in many parts of Europe.
GER30 registered its worst day of the current quarter and today it stays below its EMA100 (black line). As such, it stays in a precarious position and sentiment still looks cautious, despite signs of improvement.
Below EMA100, immediate risk is on the downside and we can see lower lows (Friday low at 16,092), but fresh catalyst will likely be needed for a deeper pullback towards 15,950-18.
Last week's corrective move was pretty shallow, as Euro weakness and persistent dovish ECB commentary, helped in containing it. Despite current difficulties, the index has not lost the ability to set record highs (16,302) and look towards 16,450, although the lack of impetus may keep it subdued for now.
No tier-1 data are expected today, but tomorrow, focus will turn to Germany and Eurozone PMIs.
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.