GER30 Supported, Trying to Avoid a Negative Week

  • GER30
    (${instrument.percentChange}%)

GER30 Analysis

Renewed tensions around Ukraine this week have led to risk aversion and the EU Commission to propose a new fifth package of sanctions against Russia a few days back [1]. This included an embargo on coal imports from Russia, which seems like it may not be easy to pass, but refrained from a gas and oil ban which would be a more contentious topic, given Germany's and the continent's dependence.

Sentiment shows some improvement since yesterday and the index tries to return above the EMA200, but may find it hard to do so and to avoid weekly losses (black line). The fact that it defended the 38.2% Fibonacci of the March Low/High rise helps its ascending aspirations and gives it the ability to push for higher highs (14,960), but it does not yet inspire confidence for such moves.

Furthermore, the upside contains some significant roadblocks, such as the descending trendline form this year's highs (14,760), the 200Days EMA (15,000) and the daily Ichimoku Cloud.

Despite today's constructive mood, investor sentiment is fragile and GER30 is in precarious position, as long as its stays below the EMA200. This can lead to new pressure towards 13,787-13,693, but a catalyst will be needed for a larger decline that would expose it to 13,394-09.

Nikos Tzabouras

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.

References

1

Retrieved 01 Jul 2022 https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_22_2281

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses exceeding deposited funds, if you are a professional client. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}