The DAX index edged 0.28% lower to close at 11587 ahead of today’s ECB meeting. With interest rates expected to remain unchanged, investors will pay attention to the ECB’s economic outlook and whether the bank will pursue the TLTRO to pump the region’s slowing economy. Following the meeting, President Draghi’s press conference will garner further attention as investors assess how dovish the ECB has become to influence price action in German equities.
While the trend line support on the DAX index remains intact and the daily RSI reading remains in positive territory, the price failed to re-test the resistance at 11680 and consolidated around the 20-period MA. Should price break and sustain below the support at 11540, bearish price action would come into play with the next target below the trend line support at 11400.
Support: 11480/ 11400
Resistance: 11680/ 11860