The German Index rose 0.5% despite disappointing PMI reports from the Eurozone and Germany. While ECB’s interest rates were unchanged after yesterday’s policy meeting, President Draghi’s economic outlook shifted to the downside as uncertainties surrounding Brexit and US-China trade relations remain consequential to the Eurozone. In today's economic news, the German IFO business climate index is due and may impact the price action as it rates market expectations for business activity in Europe’s largest economy.
The DAX was up 0.5% yesterday and may continue its upward course to meet the resistance zone at 11230/11260 before deciding whether a downside move can be temporarily ruled out amidst the recent economic slowdown in the EU. The hourly RSI reading reached the overbought threshold at 70, suggesting the index may retreat towards the 20-period MA without enough upside momentum to push it past the resistance zone of 11260 zone.
Support: 11110/ 11000
Resistance: 11260/ 11350