DAX 40 Loses Upward Momentum
Today, Germany's PMI data was released, according to Forex Factory:
→ German Flash Manufacturing PMI: actual = 42.6, expected = 40.7, previous = 40.6;
→ German Flash Services PMI: actual = 51.4, expected = 50.6, previous = 50.6.
The DAX 40 index (Germany 40 mini on FXOpen) showed a slight intraday increase, which could be viewed positively, especially given that last week, the index reached a yearly high.
However, the chart for the DAX 40 (Germany 40 mini on FXOpen) shows signs of the upward momentum slowing:
→ The RSI indicator is showing bearish divergence;
→ Price fluctuations are forming a triangle that could turn into a bearish reversal pattern known as a Bearish Rising Wedge (marked by black lines).
If a bearish break below the lower black line occurs, it might indicate that the bulls failed to maintain the momentum above the blue channel, within which the DAX 40 index had fluctuated for most of 2024.
Thus, a potential pullback towards the psychological level of 19,000 should not be ruled out.