After yesterday’s 0.58% loss, the DAX hit a new 3-months low with the following three sectors weighing most on the index's fall: Basic Resources, Pharmaceuticals, and Food and Beverages. Ongoing worries over global trade persist as the public consultation period on Trump's intent to impose additional tariffs on Chinese goods ended yesterday at midnight, with major tech companies urging the administration to avoid imposing more tariffs, which may go into effect as soon as today. In economic news, the German Industrial Production and the German Trade Balance data released today have missed expectations by a long shot, awaiting the release of Eurozone GDP figures.
Technically speaking, the DAX did not reach our second support level as it tested our long term uptrend aided by major oversold conditions on the 4H and 1H timeframe. Keeping in mind that RSI is crossing the 30 oversold threshold on the daily chart, giving way to lower price action.
Support: 11,895.6 11,704.4
Resistance: 12,106.7 12,315.4