GER30 also riggered our attentioon, as in contrast to UK100, GER30 already crossed the 50% Fibonacci retracement level set since 2016 low. This along with the fact that the pair is sloping below 200-week SMA for the 5th week, adds further negative bias to the asset.
In the long term, the next Support area is for the asset is at 10400-10570, which coincides with the 61.8% fib. retracement level and the 5-month Support between August to December 2016. Resistance is set at the trend-line of Head and Shoulders formation, at 11690 (see weekly or monthly chart).
Meanwhile, in the short term, similarly to UK100, GER30 recovered slightly, giving some hopes for an upside movement. However the big test remains on the 11000 Resistance level. A breakdown of this level along with a move above last Thursday’s open which is an old support which has turned into a new resistance, at 11095, could switch the near term outlook into positive. A break of this Resistance could imply to the retest of December’s peak at 11566. Immediate Support holds at yesterday’s low, at 10809.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
In the long term, the next Support area is for the asset is at 10400-10570, which coincides with the 61.8% fib. retracement level and the 5-month Support between August to December 2016. Resistance is set at the trend-line of Head and Shoulders formation, at 11690 (see weekly or monthly chart).
Meanwhile, in the short term, similarly to UK100, GER30 recovered slightly, giving some hopes for an upside movement. However the big test remains on the 11000 Resistance level. A breakdown of this level along with a move above last Thursday’s open which is an old support which has turned into a new resistance, at 11095, could switch the near term outlook into positive. A break of this Resistance could imply to the retest of December’s peak at 11566. Immediate Support holds at yesterday’s low, at 10809.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.