In Europe today, Italy's populist government is set to escalate a row with the European Commission if it refuses to amend draft budget plans that go against EU fiscal rules, putting some pressure on European bourses. Moreover, Germany is set for a busy day on the economics front with inflation readings and the ZEW investor confidence survey results due.
The bears were in full control yesterday, moving the market lower throughout the whole session and closing below Friday's low at 11418 and breaking through key technical support at 11450, which will most likely act as resistance going forward. The RSI is mixed to bullish today suggesting some kind of upward movement in the next few hours, however the trend is still bearish on the medium term and the bears will most likely target the next support level and 52-week low at 11050.
Support: 11450 / 11050
Resistance: 11660 / 11825