The German index hit fresh lows earlier, as Gazprom announced that it will hault supply of gas to Poland and Ukraine due to their refusal to pay in Russian Rubles , but looks past this and gains more than 1% at the time of writing.
This gives it the opportunity to push towards the EMA200 (at around 14,270), but we are cautious around its ascending aspirations as the upside contains many roadblocks, like the descending trendline form this year's highs and the 200Days EMA.
Despite the jovial mood in major European stock markets toay, there are various potential sources of risk that could dampen sentiment, such as the Covid-19 situation in China, growth fears and heightened Russian-Western tensions.
GER30 closed Tuesday under the daily Ichimoku Cloud and the 50% Fibonacci of the March Low/High advance and remains far below the EMA200, which keeps bias on the downside. Yesterday's sharp drop has created risk for a larger retreat towards the 61.8% (13,394), but bears will likely need a catalyst to move beyond that and challenge 13,000.
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.
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