1-hr GERMAN 40: The DAX Might Dip Lower

11 dic

The German DAX has corrected by 200 points from its Monday highs, and further declines seem likely. This outlook is reinforced by the Death Cross—a well-known sell signal—indicating strong short-term bearish momentum. Other major indices, including the UK100, US100, and US30, are also experiencing declines. If the DAX is lagging these counterparts, further losses in the German index may follow. Currently, the price hovers near a resistance level around 20,340, which coincides with the significant 38% Fibonacci retracement. For traders looking to capitalize on the current bearish momentum, a more favorable risk-to-reward ratio might be achieved if the price retests the crucial 50% Fibonacci retracement level, located 50 points above the current value.