DAX levels to watch after its sharp pullbackGermany 40 CFDFOREXCOM:GER40FOREXcomEuropean markets took the brunt of the sell-off amid the rewed Middle East tensions this week. The DAX was trying to stabilise along with global markets this morning. Let's see if it will be able to do if oil continues to press higher. After failing to sustain its breakout above the January 2026 record high of 25,512, the index has sold off suggesting the move may have been a false breakout. Still, the broader uptrend remains intact for now, with the rising trendline currently being tested around 24,850. A more bearish outlook would emerge if the index breaks below the 26 June low at 24,550, as this would mark the first significant lower low and undermine the current bullish structure. Until then, the bullish case remains valid, although recent price action has lacked conviction and momentum. On the upside, the DAX needs to regain strength and reclaim 25,512 to re-establish the broader bullish trend. Before reaching that level, traders are likely to encounter initial resistance around 25,100. By Fawad Razqqzada, market analyst with FOREX.com