The German DAX has seen a bit of sideways action on Wednesday, as we continue to have a lot of external problems.
DAX
The German index has been noisy during trading on Wednesday, being slightly negative, but you can see that we did fall a little further earlier in the session. But again, we continue to see the 50-day EMA as support. We've turned around multiple times over the last couple of days, and interest rates around the world are higher than most traders are comfortable with. With this, we have a problem in the DAX. It's basically an argument between geopolitics and energy, causing issues.
Top Regulated Brokers
Risk Sentiment
Risk sentiment is taking a hit across European equities due to escalating tensions in the Middle East. Of course, Germany won't be any different. Elevated oil prices driven by the renewed attacks in the Middle East also fuel inflation concerns. And this is particularly difficult for the Germans as their industrial sector is such a huge part of the DAX. That being said, it is still floating around this 25,000 level, even though we have all of that and ASML showing strong earnings. German tech didn't catch the tailwind from their Dutch compatriots. German tech is sluggish.
With that being said, it's worth noting that companies like SAP were a little bit negative. Siemens was negative. Airbus was just a little bit sluggish as well. So, with all of that tied together, it's not a huge surprise that we see ourselves just sitting right at this crucial level. Nonetheless, if we can break out above the 25,250 euro level,
I believe then the market will start to catch a little bit of a bid from those looking to chase momentum. I have no interest in shorting the DAX. I do like this index. It's just not really doing anything right this second.
Ready to trade our daily forex forecast? We’ve shortlisted the best Forex brokers for CFD trading in the industry for you.