GER30 - H4
The German Index dropped yesterday, weighed by losses of big automakers, following ACEA's registration figures that showed a 22.8% y/y slump in new car registration in the European Union.
Today its extends its decline, as broader sentiment remains poor, amidst new oil disruptions and monetary normalization prospects from major central banks, even though the ECB is behind its counterparts in the tightening path.
With losses of around 1.5% this week and fresh 2021 lows today, 200Day EMA (15,400) has been brought in the spotlight, but bears don't seem yet ready to tackle this level.
On the other hand, GER30 tries to hold 50% Fibonacci of the "December Low/January High" advance and along with RSI close to oversold levels, it may be able to react higher.
This could give it the chance to reclaim EMA200 (15,820-30), but improvement in sentiment is needed for it to break past the descending trend-line from this month's highs (15,970-90).
Inflation data from Germany did not offer any surprises, since CPI rose 5.3% y/y as expected in December, while Eurozone Inflation is expected tomorrow.
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.