It is the lunchtime in Europe now, but the gloomy atmosphere denies to leave investors. The largest European indices remain in red, expressing concern about the speech made by President Donald Trump, during which he threatened to impose additional duties on Chinese products. On the plus side, however, it can be noted that for two hours you can see modest rebound attempts.
The futures market on Wall Street has so far yielded less effective price drops than on European or Asian markets. Futures on the SP500 are only sliding by 0.2%, while futures from NASDAQ almost do not record changes in the exchange rate. In a similar condition is the German DAX, which dropped by about 1.5%. Beiersdorf was the only company listed in the DAX index to record increases during today's session.
On the currency market, traders can observe increases in USD and JPY, which means the global investors are running to the so-called safe haven assets. Gold also has a price increase, but only by about 0.1%. These movements may be justified by the widespread fear of developing political disputes between China and the US.
WTI oil erases yesterday's increases, which were the result of OPEC's less radical approach to raising the level of output, falling by more than 1 percent. and staying at the limit of USD 65 per barrel. The price of cotton falls another day, losing about 2.5%, leveling the levels at the end of May.
Let's now take a look at the German DAX index technical picture at the H4 time frame. The market opened with a gap down this morning and so far made a low at the level of 12,600, which is a technical support for the price. Currently, the bulls are trying to fill the gap between the levels of 12,837 - 12,684, but so far no avail. The other obstacle on the road higher for bulls is the golden internal trend line, which is acting as a dynamic resistance. If the bulls will be too weak to move higher, the bears will push the price lower again towards the level of 12,547. Weak momentum and stochastic pointing to the downside support the bearish bias.
