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 (Germany 40 mini at FXOpen)

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.

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