GER30 Down On Covid Woes
GER30 - H1
Broader market sentiment took a nose-dive, after Austria announced lockdown measures to restrain the spread of the coronavirus. This sent investors to the arms of safe-havens such the US Dollar and Japanese Yen and away from stock markets.
The German indicator reacted lower on the news, with the Covid situation in Europe being a risk factor about which we had warned a couple of days back, as well as for the potential of corrective moves last week.
This led to a breach of the EMA100, but initial drop is contained above the ascending trend-line from October lows (at 16,100), with the relevant Euro plunge, helping towards this direction.
As long as risk-off persists, this support can give way and expose the GER30 to sub-16,000 moves, with the first noteworthy support located at the 15,950-20 area.
If the current levels hold, and investors manage to shake-off the Covid-jitters, then they can push for fresh record highs (16,302).
In any case, technical approach is of lesser importance at this stage, as risk-trends are the main driver.
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Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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