German DAX30 slid again on Wednesday and was trading 0.65% weaker during the London session, hovering around 12,150 EUR.

It was another negative day in the emerging markets and most of the emerging currencies crashed, which resulted into a risk-off trading sentiment. Therefore, stocks were sold-off and investors piled into gold and US dollar.

From the macrodata perspective, the German services PMI for August was revised lower and printed 55.0, down from 55.2 previously. In addition, the euro zone’s retail sales slowed on the yearly basis to 1.1% from 1.5%, while analysts had expected a slowdown to 1.3% only. Weaker numbers also helped the bearish mood on the DAX.

The index dropped to the key support of 12,100 EUR, where previous lows are located. If bulls wont defend this level, the bearish trend is confirmed and the next target for bears would be at 11,900 EUR. Moreover, the index has broken below the long-term bullish trend line, which also suggests a larger correction could occur in the near future.

On the upside, the first resistance for today is around 12,170 EUR and if broken, further upside potential toward 12,240 EUR seems likely.

Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.