The German Index posted gains on Thursday before closing 0.12% lower at the close. On the data front, the Eurozone CPI figure of 1.6% suggests subdued inflation alongside a weakening economy will delay ECB’s plans on lifting interest rates. Moreover the ongoing global trade war and
political uncertainties weigh on Germany’s trade dependency leaving the DAX index susceptible to global trade headlines.
The Dax index managed to reach resistance zone of 10950/11000 as it climbed past the 200-period EMA. However , there isn’t enough momentum to ensure price action will move above the resistance level at 11000 and exit its ranging period. The short-term bias looks neutral to bullish alongside the daily RSI reading slightly above 50. Should price action reverse, it should move below 10880 before testing key support level of 10780 .
Support: 10880/ 10780
Resistance: 11000/ 11140