- August 10, 2018
- Posted by: admin@diversi_@finance
- Category: Forexlive Breaking news
The DAX 30 just traded below the July 20 low of 12463 as traders are reducing their long positions following fear of an emerging market meltdown.
The Turkish lira had declined by 11.92% at the time of writing, followed by a 1.35% decline in the South African Rand, and a 1.06 % decline in the Mexican Peso. European banks such as BBVA, UniCredit, and BNP Paribas are said to have large and unhedged exposure to the Turkish economy.
The break to the July 20 low in the DAX 30 is now exposing the index for further declines in the days ahead, and the next strong demand level is the June low of 12107.
I doubt traders will be short-selling the DAX 30 at current levels as the risk-reward ratio is not optimal for new positions, and as the overall trend of the DAX 30 is choppy. Third, U.S. stock markets remain bullish for now, even though they are under pressure. However, this will probably not stop traders from reducing their long exposure and cause the DAX 30 to drift lower.
DAX 30 Daily Chart