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
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