The DAX index posted a sharp loss of 1.57%, and ended at 11603 as it followed through selling pressure on Wall Street ahead of the FOMC meeting on Wednesday. Moreover, President Trump’s ambiguous comment of holding tariffs on China raised concerns over the Sino-US trade dispute. Adding to global concerns is Brexit’s indefinite course as the EU has yet to approve on PM Theresa May’s request to extend the withdrawal deadline. Without further clarity on the mentioned global issues, cautious sentiment is likely to lead price action.
The DAX index erased sharp gains on Tuesday as it reversed its rally from the 11820 high and closed at 11603. Price has managed to hold above the 100-period MA around 11580, which will be indicative of further direction on the index. Trading through this level would target the 11540 level and subsequent low at 11480. Alternately, a trade above the 11680 level would be needed to indicate buying pressure.