The German 30 index is under pressure again today after last week’s rally faded. The index broke above resistance at 12950.00 and 13000.00 before falling short of the 13200.00 level. The selloff has broken supports and the index is trading in the lower portion of the trading range. The outlook remains bearish with a recovery of yesterday’s highs needed for bulls to attempt 12900.00 again. Traders will be watching for a break of the 12770.00 area which points to a moved back to the moving averages above 12809.40, followed by a retest of trend line resistance at 13098.00.
Support below comes in at 12600.00 followed by 12544.00. A drop under this level would signal a reversal of the rally last week and a swing towards a more bearish outlook. Support under 12500.00 comes in at 12474.00. The 12375.00 level represents a zone of support down to 12335.00 and falling trend line support. A move down out of this range can point to further declines as the summer progresses towards.
For more in-depth analysis and market forecasts visit our FxPro Blog.