The DAX index edged lower on Friday closing at 10887 . Germany’s relationship with key trading partner China is at stake as the global trade war and weak trade data from the world’s second largest economy weighs on investors’ sentiment. Moreover, the decline in European countries’ industrial production suggests weakened demand and ignites fear over a slowing German economy. Traders should look to today’s Eurozone industrial production figure that may follow the theme of weakness.
The DAX index paused gains around resistance zone of 10970/11000 and fell to support at 10800 as it failed to break past the 200-period MA. Price action is constrained by the Bollinger bands, with the 20-period MA acting as the mark on whether price will retest resistance of 10970 or bounce off of it to the downside and meet lower support level at 10690.
Support: 10790 / 10690
Resistance: 10880 / 10970