DAX: Further downside potential below 7155
After two days of consecutive losses that dragged the German benchmark back to the strong support area at 7140, the market started the day on a negative footing this morning. As the Obama win euphoria fades out, investors are now focusing on the fundamental issues on both sides of the Atlantic. With the US facing the fiscal cliff riddle and the ECB President stating that the euro crisis starts to hurt the German economy, it looks like there are choppy waters ahead for the DAX. As long as the negative trend line that is capping the price movement on the 30 min chart remains in place, the technical set up favours short positions. At 7161 at the time of writing a downside penetration of 7155 would expose the 7105 level. Another quiet day on the European economic data front keeps the focus on US event risks with the US Consumer sentiment among the most notable.
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