Dax40trend — Trading Ideas on TradingView

DAX Stock Index Declines Amid Trump Tariff Threat DAX Stock Index Declines Amid Trump Tariff Threat The German stock index DAX 40 (Germany 40 mini at FXOpen) is showing bearish momentum at the start of the week. This may be driven by a combination of factors, the most significant of which is the threat of tariffs on Europe from the United States. According to Reuters, US President Donald Trump has announced a 30% tariff on most goods from the EU, set to come into effect next month. However, the decision is not yet final. Analysts caution against premature panic, suggesting that negotiations could still result in a trade agreement — nonetheless, the chart reflects a sense of unease among investors. Technical Analysis of the DAX 40 Chart The price surge in July above the previous all-time high near the 24,500 level appears to be a false bullish breakout — a sign of market weakness. Buyers may hope that the market will find support at the former resistance line (marked in red), drawn through the local highs of June. However, if news surrounding the US–EU negotiations turns negative, the DAX 40 index could fall towards the 23,650–23,750 support area, which is reinforced by the lower boundary of the medium-term ascending channel. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

DAX Stock Index Rises Over 20% Year-to-Date DAX Stock Index Rises Over 20% Year-to-Date The German DAX 40 index (Germany 40 mini on FXOpen) is showing significantly stronger performance than other major global stock indices as of the end of May. For comparison, since the beginning of 2025: → The tech-heavy Nasdaq 100 has remained largely flat; → The S&P 500 is down by 1%; → Japan’s Nikkei 225 has fallen by approximately 4.5%. Why Is Germany’s Stock Index Climbing? The rally may be driven by a combination of factors, including: → An ambitious fiscal stimulus programme launched by the German government, featuring substantial public investment in defence and infrastructure development. → A dovish monetary policy stance from the European Central Bank (ECB) amid slowing inflation. Expectations of further interest rate cuts in 2025 have made equities more attractive than bonds, drawing capital into the stock market. Technical Analysis of the DAX 40 Chart These fundamental drivers have supported the formation of an upward trend channel (marked in blue), with the median line acting as a key area of support. The DAX stock index experienced a sharp drop on Friday (highlighted by the arrow) after the US President unexpectedly announced 50% tariffs on EU imports, citing slow progress in trade negotiations. By Sunday, however, Trump postponed the tariffs until 9 June following a “constructive conversation” with European Commission President Ursula von der Leyen. Since then, the price has: → Rebounded from the lower boundary of the channel, which is reinforced by support at the 23,350.0 level; → Approached the 24,100 level — a strong resistance zone this month. Given the uncertainty sparked by Trump’s impulsive policy shifts, investors may be shifting capital from US to European markets, further supporting the DAX 40’s position as a leader among global stock indices. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Quarter Ends, Setup Begins: Long from DAX Support Zone DAX returned to its major support zone around 22,000 after an extended decline through March. I’ve been triggered into a long position as we step into a fresh month and quarter. We’re sitting at strong historical demand with multiple macro events lined up this week—I’ll take what the market gives and manage it accordingly. No ego here, just flow with the setup. Let’s see where this one heads as NFP and PMI data come in. Technicals • Timeframe: 1H • Entry Zone: Strong support retest at 22,000 • Setup: Long triggered on reaction from major support • Target: Zone around 22,950 • SL: Below the support zone (~21,800) • Fibcloud: Still trending below, watching for reclaim • End-of-month rebalancing and Quarter close may add volatility. Fundamentals • DAX dropped nearly 2% on Monday, hitting its lowest levels since Feb 10, in line with global market weakness. • US trade tariff uncertainty under Trump’s “reciprocal” rhetoric weighs on sentiment. • Germany’s CPI eased to 2.2%, the lowest since Nov 2024, aligning with market expectations. • Q1 performance remains strong overall, up nearly 11%, supported by Germany’s spending plan. • Eyes on this week’s NFP and PMI data which could drive further price action. Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.