GER30 tries to Shake Off Covid Jitters

  • GER30
    (${instrument.percentChange}%)

GER30

Another risk-off wave was witnessed yesterday, as the United Sates confirmed their first case of the Omicron Covid-19 variant. It was detected in California and the infected individual was a traveler who had returned from South Africa on November 22. [1]

As per Dr Fauci, the Chief Medical Advisor to the US President, the infected person was fully vaccinated and experienced mild symptoms. [2]

The news pushed GER30 lower on Wednesday and led to the second straight daily close below the 200Day EMA and as long as Covid fears persist, there is high risk for further pain. As such the index is exposed to fresh weekly lows (14,908), although fresh catalyst may be required for a breach of October's low (14,810).


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

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The index is upbeat though today, and tries to shake off yesterday's renewed Covid jitters, while its technicals show improvement. The Relative Strength Index (RSI) bounces off oversold territory on the Daily chart and has moved above 50 on the Hourly.

This can create further upside, but given the current environment and the multiple obstacles in the immediate upside, we are cautious for a break above the descending trend-line from its all-time highs (currently at 15,550-70). Successful effort can open the door for further recovery towards and beyond 15,781.


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

Volatility remains high and Omicron risk-trends are the main driver of the moves, requiring caution. On the data front, Eurozone producer price Index and unemployment rate stand out.

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 02 Dec 2021 https://www.cdc.gov/media/releases/2021/s1201-omicron-variant.html

2

Retrieved 26 May 2022 https://www.whitehouse.gov/briefing-room/press-briefings/2021/12/01/press-briefing-by-press-secretary-jen-psaki-december-1-2021/

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