The DAX broke its 7 day winning streak as it declined by 0.49% on Friday. Downside pressure stemmed from the US non-farm payroll report which showed strong jobs growth in the US and lowered markets expectations for an imminent rate cut from the Fed. Today, Germany publishes industrial production and trade data for May which is likely to influence price action on the DAX. In addition, world trade developments will continue to be monitored and dominate market sentiment.
The DAX dropped by 61 points to end at 12568 on Friday. The price edged below the 12600 level coinciding with the 20-period MA to target the lower support at 12500. We will look for a sustained move below 12580 to maintain selling pressure with a move below 12500 required to target 12440. Alternately, a recovery above the 12600 level would enable the DAX to re-test its high at 12660.