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DAX 40 in the Red as Markets Approach the Week with Caution


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DAX 40 in the Red as Markets Approach the Week with Caution

 

DAX 40: IN THE RED AS MARKETS APPROACH THE WEEK WITH CAUTION

The DAX traded lower in European trade as losses continue to mount since last week’s trendline rejection. We have since had declines of +/- 1000 points with the YTD lows now firmly in sight. The cautious mood seen to start the week is down to a host of central bank meetings to come as well as Eurozone PMI on Friday.

DAX 40 DAILY CHART –SEPTEMBER 19, 2022

DAX daily chart

Source: TradingView

From a technical perspective, we had a massive shooting star candle close on the weekly that engulfed the previous week as well. We saw an +/- 800 point drop last week with todays declines taking the total drop to just over 1000 points from highs around 13550.

On the daily timeframe we continued to push down this morning before finding support at the September 5th low around 12590. On an intraday view this level could hold the key with regards to the YTD low (12377), as a close below could open up a retest of the YTD low or a clean break lower and new lower low. This would be keeping with the overall structure on the daily timeframe. We currently trade back below the 20, 50 and 100-SMA while a pullback to retest the MA’s cannot be ruled out as we approach the FOMC meeting.

 

Sep 19, 2022 | DailyFX
Zain Vawda, Analyst

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