GER30 Upbeat, Testing Key Levels
GER30 - H4
The German index dropped in January, as global equities were rattled by geopolitical tensions, inflation jitters and monetary tightening prospects. The new month starts in a better mood as the index run its fifth profitable day, despite manufacturing activity retreating to 59.8 in January, from 60.5 prior.
GER30 is at a critical technical point as it tries to move beyond the daily Ichimoku Cloud, EMA200 and downward trend-line from January's record highs, an area we had highlighted form the last analysis.
A break above can accelerate the move towards 15,973-15,600, but it may be early to talk about new all-time highs (16,302).
Investor sentiment seems to be in a good place, but uncertainty ahead of Thursday's ECB monetary policy decision may cap the upside, while the situation in Ukraine could weigh again.
As such, GER30 could be pressured to new weekly lows (15,539), but a catalyst will be needed for a larger decline back towards the 14,840-10 region.
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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