The GER30 remains under pressure, with its daily chart positioned between the lower blue and red bands in its bearish area. Moreover, its stochastic remains in its lower quintile (green rectangle). This position indicates a strong downwards momentum is present. A possible implication is that shorts may target any short-term strength.
The current pressure is due to Russia indefinitely cutting off gas supplies via the Nord Stream 1 pipeline. Gazprom has blamed this on a technical issue. However, the primary interpretation sees this as a political statement due to Western countries implementing a price cap on Russian oil - the latest sanction following its invasion of Ukraine.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.