German Business Confidence Hits Lowest Since 2023 Amid Iran Tensions

The DAX is trading below its 20- and 50-day moving averages, with the RSI at 43 indicating weak momentum. The MACD line remains below the signal line and in negative territory, confirming short-term downward momentum. A sharp decline in German business confidence, combined with geopolitical risks, could further weigh on market sentiment. However, the index closed at 24,041 in the last session, where it may find some support, suggesting that while downside expectations remain high, the decline could be limited.

Brent crude is trading near $104, with the RSI at 52 indicating neutral territory. The MACD remains below the signal line, suggesting weak short-term momentum. A decline in German business confidence could amplify demand concerns and weigh on oil prices. However, tensions with Iran pose a supply-side risk, limiting potential downside. Prices staying above the SMA20 and SMA50 point to a still-positive medium-term trend.

EURUSD is trading at 1.1707, below both the 20-day and 50-day moving averages. The RSI is in weak territory at 47, while the MACD remains below its signal line. A decline in German business confidence to its lowest level since 2023, amid tensions with Iran, could heighten concerns about the Eurozone economic outlook. This development may support downward pressure on EURUSD in the short term. However, the potential for a limited decline also exists.