The DAX index declined by 0.69% led by losses in US equities following the release of weak US economic data. Moreover, the Eurozone and its largest economy posted stagnant GDP data further highlighting the global concern over the region’s economic slowdown. While European markets are on edge, investors await positive news from ongoing US-China trade negotiations to shift sentiment.
After reaching a high of 11270, The DAX index failed to extend its rebound and closed lower at 11089. A shooting star candlestick formation led the retreat of the index and indicates that selling pressure has taken control. The technical outlook is bearish and price has yet to breach the 200-period MA at the psychologically significant level of 11,000 to pave the way for further downside move.
Support: 11000/ 10870
Resistance: 11120/ 11220