DAX edged 0.38% lower on Wednesday as Germany factory orders made a steep decline of 1.6% raising concerns over Europe’s largest economy. The nation’s dependency on global trade is another cause for concern as the US-China trade war has seen no concrete progress ahead of the deadline set in March and investors await another meeting between the two nations. In economic news, Germany’s industrial production and EU’S economic forecasts are to be released and may add to investors’ worries over the Eurozone’s economic slowdown.
The DAX index retreated from its high of 11390 as it failed to trade above the 100-day MA at 11370 separating it from the continuation of its uptrend. Should price remain above the 11230 support coinciding with the 50-period MA , bullish bias should remain intact. In the case that the price trades below that level, we could see further downside move with its next key support at 11148.
Support: 11230/ 11180
Resistance: 11390/ 11450