DAX Slide – MaiMarFX

The bearish breakout in the DAX (discussed in yesterday’s analysis) happened faster than expected. The index slid even below 14400 amid a high degree of uncertainty in the market.

Given the strength of a bear market, we pencil in lower targets at 14200 and 14000.

Before (21/2/22):

After (22/2/22):

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EUR/USD

Long @ 1.1320

Short @ 1.1275

GBP/USD

Long @ 1.3615

Short @ 1.3565

DAX® (GER30)

Long @ 14420 – 1st trade: -10 points, 2nd trade: +40 points

Short @ 14310

ETH/USD

Long @ 2620

Short @ 2490

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

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The stock market has been taking a breather after the big rally and thus we saw the DAX falling like a stone towards 15100. While this correction was overdue after the latest gains, it will be interesting whether the 15000-support (red dashed line) will hold. If the index drops significantly below that support barrier, we see a lower support zone between 14800 and 14600. Bulls who want to go for 16000 could raise hopes after a break above 15550.

Both EUR/USD and GBP/USD finally refrained from extending their gains towards higher targets and consolidated Tuesday.

GBP/USD: The cable reversed after a test of 1.40 failed to ignite further gains. While the outlook remains bullish in this pair, we might see a deeper correction towards 1.3870 and possibly even 1.38 before bullish momentum accelerates again.

EUR/USD

Looking at shorter time frames (hourly chart) we see a head-shoulders pattern suggesting upcoming bearish momentum in case of a break below 1.2015 (red neckline). If 1.20 breaks, we will focus on lower prices between 1.1985 and 1.1950 (rectangle) that could attract more buyers in this pair. This short-term pattern becomes however void with an upside break of 1.2050.