The pessimistic outlook on global growth weighs on the DAX index as investors shift to a risk-off sentiment. Today’s German consumer confidence result remains the same as the previous month. Though it beat the lower forecast, it doesn’t overcome the effect of a slowing global economy at play. Ahead of the day, traders should direct attention to any global front headlines related to global growth.
The DAX is on a clear downtrend as it bounces off of the 20 period moving average acting as its resistance level. On the 4H chart, a doji candle formation after a series of bearish candles indicates and suggests that selling pressure might be weakening. The 10582 and 10511 levels act as the ranging bounds for the index before it makes a decisive move.
Support: 10511 / 10407
Resistance: 10588 / 10630