The DAX ended 0.07% lower on Friday to end a bearish week. The index found support from economic data as the Eurozone’s industrial production rose by 0.9% in May versus an estimate of 0.2%. Moreover, China showed that its trade surplus has widened with a deficit in its imports raising concerns for the German economy which relies on exports and the Chinese market. Today China published better than expected retail sales and industrial production data while its GDP slowed to 6.2%. Given that there are no major economic releases from the Eurozone, we can expect the German blue-chip index to find support from the better part of Chinese data. Moreover, any US-China trade headlines are likely to influence direction and sentiment.
The DAX ended 8 points lower at 12323 on Friday. The price can be seen consolidating above the 12300/12320 support zone whilst the 20-period MA acts as dynamic resistance on the downtrend. A sustained move below 12400 would maintain selling pressure while a break below 12300 would be required to drive the DAX lower with key support coinciding with the 50-day MA at 12190. It is worthy to note that a move above 12450 would be required to reverse the DAX’s bearish bias.