The DAX edged lower to close at 11173. Yesterday’s EU GDP data fell in line with expectations and German employment numbers disappointed, highlighting the slowdown in Europe’s largest economy. With little progress made on the concluded US-China trade talks, Germany’s trade dependency continues to weigh on the DAX Index. Investors should draw attention to today’s release of manufacturing data and the CPI figure from the Eurozone to impact price action on German equities.
The German Index fell by 0.06% in yesterday’s session, failing to push past resistance at 11330 whilst holding above the 100-period MA acting as support. The price should continue to range within constricting Bollinger bands before a valid break out indicates further direction. Bearish price action will continue should the index sustain below support at 11150, however the near-term outlook remains neutral.
Support: 11150/ 11000
Resistance: 11260/ 11330