Trump escalates trade war into high gear, DAX30 CFD bears in control
Source: Economic Events August 26, 2019 - Admiral Markets' Forex Calendar
After the complete escalation in the trade war between the US and China last Friday, the outlook for the DAX30 CFD is clearly bearish.
The initial news that China would retaliate to the latest tariff announcement from US president Trump by slapping 10% tariffs on 75 Billion USD in US imports was responded to by a solid appearance from Jay Powell, as his speech at Jackson Hole stabilised markets and let them recover some losses.
Shortly after, "hell broke loose" when US president Trump asked whether Fed chairman Powell or Chinese prime minister Xi is the bigger enemy of the US, and warned that he plans to retaliate towards China (which he ended up doing after markets closed by announcing new tariffs) and ordering US companies to find an "alternative" to China.
As a result, the DAX30 CFD saw a sharp drop, and attacked the region around 11,550 points going into the weekly close, and should clearly be considered bearish into the start of the week.
A break lower activates 11,250 points as a first target and below 10,800 points.
The technical picture could only brighten with the DAX30 CFD making it back above 11,830/850 points, but this bullish outlook clearly seems to be off the table for the moment:
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Hourly chart (between August 5, 2019, to August 23, 2019). Accessed: August 22, 2019, at 10:00 PM GMT
Source: Admiral Markets MT5 with MT5-SE Add-on DAX30 CFD Daily chart (between May 16, 2018, to August 22, 2019). Accessed: August 22, 2019, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of the DAX30 CFD increased by 2.65%, in 2015, it increased by 9.56%, in 2016, it increased by 6.87%, in 2017, it increased by 12.51%, in 2018, it fell by 18.26%, meaning that after five years, it was up by 10.5%.
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