As we noted six days ago, European stock markets were showing optimism amid expectations that the armed conflict in Ukraine—now approaching its third year—would be resolved. During this period, the DAX 40 (Germany 40 mini on FXOpen) gained approximately 1.6%, setting a historic record.

However, sentiment appears to be shifting in the opposite direction. According to the Germany 40 mini chart on FXOpen, the German stock index DAX 40 experienced a sharp decline yesterday, losing around 2%. This drop is partly driven by Trump's latest tariff statements. According to Trading Economics:

→ The US President is considering imposing new 25% tariffs on automobile, semiconductor, and pharmaceutical imports, with an official announcement expected in early April.

→ Market sentiment deteriorated after ECB Executive Board member Isabel Schnabel tempered expectations of a more expansionary monetary policy.

Technical Analysis of the DAX 40 (Germany 40 mini on FXOpen)

Since the start of 2025, the index has been following an upward trend (illustrated by the blue channel), which remains intact. However, yesterday’s aggressive drop pushed the price into the lower half of the channel, indicating increased bearish activity. If negative sentiment persists, the price could decline further—potentially testing the lower boundary of the channel.

The 22,200 level appears to be a significant support zone, as bulls demonstrated strength here less than 10 days ago (as indicated by the blue arrows):
→ The price formed a long lower wick when testing the psychological 22k mark.
→ It then surged into the upper half of the channel with a strong bullish candle.

Conversely, the 22,730 level has flipped from support to resistance (marked by orange arrows), signalling the presence of bearish pressure.

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