Source: Economic Events August 24, 2020 - Admiral Markets' Forex Calendar
Into last week's close, the DAX30 bears made another attempt at pushing the German index below 12,750/800 points – and finally succeeded.
After French Manufacturing PMIs fell to 49 in August, well below expectations of 53.7 points, after publishing two months of growth and after German manufacturing PMIs came in mixed, the DAX30 was able to withstand the first attempt at breaking lower, but bears finally succeeded several hours later.
With this break lower, the "disappointing" FED Minutes along with some FOMC members expressing concerns about a yield curve control that could result in excessive balance sheet growth could act as a catalyst and deliver fuel for a deeper short-term correction in the days to come.
A yield curve control was certainly a reason for the accelerated growth and tech stocks on the upside while there are rising fears that the FED probably will not come up with such an ultra-dovish step anytime soon. As such, the potential speculation is that a drop in growth and tech stocks, which has been the primary driver for the past five months, could now be imminent.
Such a correction in US Tech stocks would potentially spill over into the DAX30 and could make a quick drop to as low as 12,470/500 points and even to as low as 12,200 points a serious option.
Only the recapturing of Friday's highs at around 12,950 points brightens the technical picture on the H1:
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Hourly chart (between August 03, 2020, to August 14, 2020). Accessed: August 14, 2020, at 10:00 PM GMT
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between March 25, 2019, to August 21, 2020). Accessed: August 21, 2020, at 10:00 PM GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of the DAX30 CFD increased by 9.56%. In 2016, it increased by 6.87%. In 2017, it increased by 12.51%. In 2018, it fell by 18.26% and in 2019, it increased by 26.44%, meaning that after five years, it was up by 34.2%.
Check out Admiral Markets' most competitive conditions on the DAX30 CFD and start trading on the DAX30 CFD with a low 0.8 point spread offering during the main Xetra trading hours!
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