European indices rose sharply during the first days of January, however, the sentiment has clearly changed this week. German index fell sharply within last two sessions. Looking at the D1 interval, the downward movement began after index failed to break above key resistance at 15245 points, which is marked with external 161.8% Fibonacci retracement of last two downward waves. At the moment, the index approached key support ozone around 15,000 - 14,850 points. Should break lower occur, sell-off may gain additional steam. On the other hand, if buyers manage to halt declines, there is a chance that upward move may resume.
DE30 interval D1. Source: xStation
Looking at the lower time frame - H4, the lower limit of the 1:1 structure at 14985 points is currently being tested. The negation of this level may lead to an acceleration of the downward movement towards local support at 14,600 points. On the other hand, if bulls manage to regain control, another upward impulse towards recent highs may be launched.
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DE30 interval H4. Source: xStation
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