GER30 – H4
During the last year, only four months were negative and the German index failed to register record highs in just three of them. The new year started on front foot as broader sentiment seems to be constructive, while the Euro's poor start has also been supportive.
The economic data have also been encouraging, as German Retail Sales rose 0.6% m/m in November, compared to -0.5% prior (revised form -0.3%).
GER30 has now entered its third straight profitable week and has November's record highs (16,302) in its crosshairs, but a pullback may be needed before it is able to set new ones and look towards 16,500.
Despite the solid start to the day, the index shows signs of exhaustion and the Relative Strength Index does not follow the higher highs, creating risk for downward pressure. This could lead to the broader 15,859-00 area, but a strong catalyst would be required for a deeper correction and a test of the EMA200 (at around 15,700-15,671).
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.