DAX index slumps in the early European session as the tensions between Iran and USA increase after an airstrike in Baghdad killed General Qassem Soleimani, head of Iran’s Quds Force. Also killed Abu Mahdi al-Muhandis, deputy commander of Iran-backed militias in Iraq and at least five other people.
Traders attention has turned to the Middle East tensions, but in Germany the Germany Unemployment Change came in at 8,000 topping expectations of 2,000 in December. The Unemployment Rate in the country came in at 5% in December in line with forecasts.
Investors dump risky assets across the globe today as the risk-on mood fades away. On the technical analysis side the Dax index as of writing breaks below the ascending trendline which drives the price higher since early 2019.
On the downside, initial support for Dax 30 index stands at 13,170 today’s low. Next target and strong support for the index is the 50-day moving average at 13,140. If the index breaks below, would open the way for a move down to 12,884 the low from December 10th.
On the upside, first resistance for Dax is at 13,282.74 today’s high. Next resistance level that the bulls will face stands at 13,385 the top from December 27th which guards the 2019 high at 13,425.85.