The DAX has been under strong selling pressure after Trump placed 25% tariffs on auto imports last week. The index is now down more than 6% from the all-time highs and it’s testing a key trendline.
This is where we will likely see some dip-buyers stepping in with a defined risk below the trendline. The sellers, on the other hand, will look for a break lower to start targeting the next major trendline around the 21,000 level.
DAX Index daily
The negative mood coming from tariffs is impacting global equity markets in general. If US indices continue to sell off, it’s unlikely that we will see global equity markets rising.
April 2 is going to be an important day for all markets.