One Last Protection for DAX Buyers - Forex News by FX Leaders
The situation looks almost desperate for buyers

One Last Protection for DAX Buyers

Posted Friday, March 22, 2019 by
Skerdian Meta • 1 min read

Stocks turned bearish this week amid deteriorating market sentiment, especially after the FED turned dovish on Wednesday evening. Stock markets should have rallied since it would mean that the FED won’t hike anytime soon and they won’t tighten the monetary policy.

But, the sentiment is affecting markets mostly right now and the sentiment got dented on the dovish FED. Today we had the Eurozone and German manufacturing PMI reports which showed another dip in this sector, particularly in Germany and the size of the decline got the market in a bit of panic.

That hurt the sentiment further and stock markets dived hard. [[DAX30]] lost nearly 200 pips from the top. We went long on this index a few days ago this week when it was finding support at the 100 simple MA (green). But, the 100 SMA was broken and it turnend into resistance yesterday.

Although, we still have one last protection for out trade. The 100 smooth moving average (red) Provided support yesterday and we saw the price bounce 60 pips higher from there. The negative German and Eurozone manufacturing data turned the sentiment even more negative and another wave of selling came, but the 100 smooth MA is still holding. Let’s hope that this moving average holds its ground and a reverse takes place, but it’s a tough trade.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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