The German Index tumbled yesterday following the decline in Europe’s retail sector due to weak forecasts on sales for a month in which consumers typically lift markets with traditional spending. In line with the noted weakness in the retail industry, Eurozone’s CPI fell below the forecast and further stressed European growth alongside political turmoil and the US-China trade dispute. Investors’ attention is drawn to how these factors will unravel along the week. Moreover the German IFO business climate Index is due today, rating market expectations for business activity in Europe’s largest economy.
The bearish trend on the Dax index holds as it falls 0.86% below support around 10,750. As it slides down the lower Bollinger band, dynamic resistance is found at the 20 MA with another key level above 10,920. Today’s German business climate index will determine whether price action will sustain above the 10670 zone, or carry its theme of weakness to the downside and retest support around 10630 before drawing attention to 10580.
Support: 10630 / 10580
Resistance: 10904 / 10999