The German index recorded losses of 1.55% yesterday under the influence of concerns surrounding both China’s economic slowdown and the US-China trade dispute. The challenges these concerns pose on the global environment will be further clarified in a critical meeting next week between the US and China on the development of trade issues. On the release front, Eurozone releases CPI estimates and German employment figures may be enough to drive price action today, however the index’s high level of significance to the currently hurting global economy could keep investors’ sentiment negative as they await remarks from US Fed Chairman Powell.
The Dax Index fell close to key support at 10388 however failed to break below and continues to tread within constricting Bollinger bands on the hourly chart. The 50-period MA remains a strong resistance on keeping price action within negative territory whilst it ranges. RSI reading is slightly below 50 and a lower reading could push the Index back to yesterday's low at 10400 and to further support levels
Support: 10388 / 10294
Resistance: 10586 / 10635