Could It Be A Turnaround-Tuesday?

Contagion worries over China’s property sector crackdown have fueled a global selloff in the market.

Following Monday’s plunge, it seems that selling pressure eased off somewhat with the DAX finding support at the crucial 15000-mark – at least for now. Elsewhere, the EUR/USD bounced off the 1.17-support while the cable remained trading above 1.3630.

Is it turnaround-Tuesday today? Maybe, since a correction on a Tuesday was often the case in the past following big market moves on a Monday. So, watch out for some rebound today.

EUR/USD: If the euro is able to climb back above 1.1750, we expect the pair to test the 1.1770-1.18 price area. A current support zone remains intact between 1.17 and 1.1660. Only a break above 1.1850 would shift the sentiment in favor of the bulls.

GBP/USD: The pair is oversold, making a pullback towards 1.38 and even 1.39 likely now. Falling however below 1.3630 and further 1.36, a next lower target comes in at 1.3550.

DAX: Once 15000 breaks significantly to the downside, we expect the index to test 14800 in a next move. If 15000 however holds, we anticipate a rebound towards 15700.