The German index gapped lower at the open on Tuesday, and then fell through the €12,000 level. I think that most of this is due to the EUR/USD pair
The German index gapped lower at the open on Tuesday, and then fell through the €12,000 level. I think that most of this is due to the EUR/USD pair breaking above the 1.20 level, which of course makes German exports more expensive. Ultimately, this is a market that I think will continue to find volatility due to currency headwinds, and with this being the case it’s likely that we will see a significant amount of noise near the €12,000 level. Although there is a gap above to be filled, I am hesitant to start buying as the move has been so drastic. Quite frankly, I’m now looking for selling opportunities on signs of exhaustion.
Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.
