**DAX 40 Hovers Near Key Support as AUD/USD and Copper Prices Make Gains**
*Original article by Axel Rudolph, IG Group. Expanded and updated.*
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The international financial landscape continues to demonstrate notable activity across key markets, with equities, currencies, and commodities all reacting to new developments. This article offers an in-depth look into current trends facing the DAX 40 index, offers insights into the trajectory of the AUD/USD currency pair, and discusses the momentum recently seen in copper prices. Additional analysis incorporates broader market viewpoints, sentiment, economic data, and technical factors affecting each asset class.
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## DAX 40 Struggles to Hold Support
The DAX 40, Germany’s benchmark stock index, has recently found itself at a critical inflection point. Monitored closely by traders and institutions alike, the DAX has experienced downward pressure amid global uncertainties and shifting sentiment.
### Key Factors Influencing DAX 40
– **Recent Downtrend**: The DAX 40 saw a move towards the 18,000-point mark, currently hovering close to an important technical support zone.
– **Broader European Weakness**: Assessing data from recent sessions, European equity markets have been grappling with concerns including inflationary pressures, potential changes in European Central Bank (ECB) policy, and mixed macroeconomic indicators.
– **Volatility Jumps**: The index’s volatility has increased as investors weigh the sustainability of the post-pandemic rally against tightening financial conditions.
### Technical Analysis
– **Support Levels**: The DAX’s current structure highlights the importance of the 18,000 to 18,150 range. A daily close below this band could invite further downside.
– **Resistance Marks**: On the upside, initial resistance forms near 18,350, followed by a stronger ceiling at 18,500. Breaching these points could renew bullish momentum.
– **Indicators**: Relative Strength Index (RSI) readings are neutral but approaching oversold territory. Moving Averages (MA) are beginning to flatten, suggesting indecision.
– **Chart Patterns**: Layers of support from previous consolidations and retracement levels hint at possible stabilization, although sellers have been dominant in recent sessions.
### Macro Drivers
– **German Economic Data**: Lagging GDP growth and persistent manufacturing weakness have kept investor caution elevated.
– **ECB Influence**: Market participants await cues about potential changes in ECB approach, especially regarding interest rate paths.
– **Global Market Sentiment**: US inflation data, Chinese growth numbers, and ongoing geopolitical developments (such as the Russia-Ukraine conflict) exert additional influence.
#### Summary for Traders
– Watch for closes below 18,000 for stronger bearish signals.
– Upside breaks require a decisive move above 18,500 with high trading volume.
– Stay alert to ECB communications and global macro releases.
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## AUD/USD Shows Renewed Strength
The Australian dollar has recently rallied against the US dollar, breaking out
Read more on AUD/USD trading.