The DAX edged 0.46% lower on Thursday as Sino-US trade headlines weighed on sentiment and ECB’s economic bulletin highlighted slowing growth in the Eurozone and pointed to muted inflation. While the index is vulnerable to world trade developments, some of its major constituents fall in the manufacturing sector and could see positive price action should today’s manufacturing data from Germany and the Eurozone beat their estimates.
The DAX index failed to hold above the 100-period MA around 11580 and extended losses to support at 11480 before bouncing upwards to close at 11549. Price continues to trade below the 20-period MA at 11630 acting as a barrier for a move above the resistance at 11680. Sustaining price action below the 11630 level and subsequent 11580 level would drive the index lower to test a break through the trend line support from which support at 11400 comes back into view.