The German DAX contract (DE40) is down more than 1.5% today, and the technical setup on the chart is looking increasingly challenging for bulls. The index has already dropped by nearly 1,000 points from its all-time high.
- The DAX contract is approaching a test of the 50-session exponential moving average (EMA50). The RSI has slipped below 47, and the MACD is showing a bearish crossover of its moving averages. This average currently appears to be acting as an important momentum support, and if it is broken, the path toward a test of the 24,000 area would be opened.
- Declines are also being seen across other European stock markets today, including France and the UK. Sentiment around US assets is also weakening. Markets are being weighed down by uncertainty surrounding the US–Europe trade agreement.
- From February 1, tariffs for eight countries designated by Trump—including Germany, France, and the UK—are likely to rise by 10 percentage points, from the currently applied 15%. Europe is likely to respond with retaliatory measures, potentially targeting Big Tech interests on the Old Continent.
Today’s weakness is visible even in shares of defense group Rheinmetall (RHM.DE), which initially benefited indirectly from the escalation of tensions between Washington and Brussels and London.
DE40 (D1 timeframe)
Source: xStation5
💡Geopolitics and Tariffs Under the Spotlight: Precious Metals Hit Records (Commodity Wrap, 20.01.2026)
Chart of the Day: US100 selloff continues📉
Daily summary: Its fear, but not panic yet. Trump has shaken the markets again.
New front in the trade war: Greenland❄️Will Gold rise further❓
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
