DAX Price Forecast – DAX Falls Under Heavy Selling

The DAX index crashed yesterday as it followed the pattern of the global stock indices which also fell across the board on increasing fears of the trade war blowing up to dangerous proportions and also due to the fact that the investors have now began to worry seriously about the effects that such a trade war would have on the economy of the respective countries.

DAX Lower

There are signs that the trade war is beginning to take its toll on the economy of the countries and Germany, being a manufacturing giant and relying a lot on exports as well, is likely to face the brunt once the trade war is fully joined by the Eurozone as well. For now, the brunt of the war is being borne by the US and China as the latest reports say that Trump is likely to impose restrictions on Chinese tech companies and their presence in the US. This led to the US stock indices falling lower yesterday.

This dragged the DAX along with it and this led to the index crashing through the support region at 12500 and it now trades above the 12300 region as of this writing. It is likely to continue to be under pressure when it opens for today as the pressure from the crash and the jitteriness is unlikely to go away soon. There might be some recovery later on in the day as the US markets open up.

We will have to wait and see how the rest of the global markets react to the happenings around the world. The Asian markets have been mixed so far this morning and all eyes would be on the US stock indexes to see if the risk off mode continues. The DAX is likely to begin the day lower and continue under pressure atleast until the markets in the US open later on in the day.