The German blue-chip Index fell 0.52% on Friday as it followed through the pessimism sparked by the ECB’s dovish announcements from the previous day. Today, Germany’s industrial production and trade balance came in lower than expected and may influence negative price action on the DAX index against a backdrop of concerns over a decelerating world economy as a US-China trade deal remains indefinite and Brexit’s course is yet to be clarified in tomorrow’s meaningful vote.
The DAX index fell to the support at 11400 before closing at 11457 on Friday. While the 20-period MA around 11530 should dictate near-term direction of price as it acts as the first barrier to a retest of the 11680 high, a break through support at 11400 is required to bring a bearish outlook into play.
Support: 11400/ 11280
Resistance: 11540/ 11680