DAX: risk of further declines – FXStreet

By FXStreet FXStreet (Córdoba) – The German DAX plummeted 2.44% or 235 points, closing Thursday at 9,639.59 amid poor EU data and a stronger EUR.

The decline was led by Deutsche Bank, down by 5.44% after the bank reported its first fiscal-year loss since the global financial crisis. Also under pressure were automakers, with Volkswagen, Daimler and BMW all down around 2.0%.

DAX technical view

“The daily chart shows that the index met selling interest once again around a sharply bearish 20 SMA, while the Momentum indicator has turned flat below its 100 level and the RSI turned south, now around 41, increasing the risk of further declines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is below its 20 SMA, while the technical indicators have crossed their mid-lines towards the downside, but lack bearish strength, giving little clues on what’s next for the index.”

Support levels: 9,588 9,510 9,435. Resistance levels: 9,712 9,782 9,870.
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Source:: FX Street