The DAX index declined by 0.60% to end at 11517. Thursday’s ECB policy meeting contributed to European markets’ risk off mood as it decided to delay rate hikes until next year and implement policy measures to pump the regions slowing economy whilst cutting the Eurozone’s growth estimate from the 1.7% forecast in December to 1.1%. Amidst the lack of clarity over world trade developments, the ECB’s moves have raised further concerns over weaker global economic growth and reinforced bearish sentiment amongst investors.
The DAX index fell through the trend line support and has yet to trade through the 20 day MA at 11400 to provide a bearish outlook on the index. A trade through this level would signal bearish price action and bring the support at 11280 into play. Alternately, Should price fail to trade through the 11540 level, a retest of the high at 11680 will remain unlikely.
Resistance: 11540/ 11680