The Dax Index ended marginally higher at 11587 on Thursday as fears of slowing global growth limit positive price action. The German economy’s dependence on trade relations is currently undermined by headwinds from Brexit uncertainty as a potential delay on the UK’s date of departure drags on the uncertainty further underlined by the protracted Sino-US trade war following news of a postponed meeting between presidents of the US and China. On the economic front, Germany posted soft CPI data and investors will look to today’s Eurozone CPI data to follow through.
While the DAX has been trading above the support zone bounded by the 20 and 100-period MAs, a break through the 11690 is required to signal bullish continuation. Sustained price action above the 11620 level would be needed to point to a retest of the 11690 high and a move below the 11540 support level would be needed to suggest downward pressure. Until then, the index lacks clear direction.
Support: 11540/ 11480
Resistance: 11620 / 11680