The DAX declined by 1.05% closing below the psychological level of 11000 for the first time since rallying above it in January 2019. Good news came from Germany’s trade surplus increase, however markets are distracted by lowered growth forecasts in the Eurozone as critical economic indicators point to a slowdown while Brexit uncertainties weighs on sentiment. In addition, German equities, sensitive to global trade developments, are under pressure as markets’ attention are drawn to this week’s meeting between US and China officials in hopes of concrete progress as the March trade deal deadline approaches.
The DAX index broke the 11,000 psychological level to close in bearish territory at 10906. The RSI awaits to exit the oversold region to find a pull back on the DAX index while it faces downward pressure and the 11,000 resistance level. Meanwhile the 200-period MA is acting as support at 10940, separating price from reaching lower levels. A break below it will signal selling pressure and push the DAX to lower levels around 10850. However a sustained move above it, will keep the index ranging below the 11,000 resistance.
Support: 10860/ 10790
Resistance: 11000/ 11050