Outlook for the German DAX
The DAX at the base level
European stocks fell on Friday as the escalating US-Iran conflict drove down shares and indices today. However, US President Donald Trump stated that the ceasefire remains in effect despite clashes between forces in the Gulf, while Washington awaits a response from Tehran to its proposal to end the conflict.
European stocks remain sensitive to geopolitical events, as the region’s dependence on energy casts a shadow over markets and raises concerns about its impact on inflation and growth.
The German DAX index fell by nearly 1% to around 24,450 points on Friday, extending its losses for the second consecutive day, as traders watched developments in the Strait of Hormuz and new threats of tariffs.
Trump’s threat has dampened investor sentiment by warning of “much higher” tariffs on the European Union if trade agreement commitments are not fulfilled by July 4.
The DAX from a Technical Perspective
The DAX fell for the second consecutive day and is now trading near the 24,400 support level.
It is currently trading above the uptrend line on the hourly chart.
A rebound from these levels is possible, targeting 24,600 and then 25,000.
This scenario would fail if the index breaks below 24,380 with a close on at least the 4-hour chart.
