Producer prices from Germany and flash consumer sentiment from the Eurozone are due today, headlining a light day for the European economic news. Furthermore, today the European Commission will release its euro area consumer sentiment survey results. The confidence index is seen at -3.2 in October versus -2.9 in September. Earlier this morning and following the release of German producer prices for September, the euro dropped against its major rivals, and this might impact trading on the Dax as well today.
Selling accelerated yesterday towards the end of the trading session as we broke key technical support levels at 11460. The trend now is clearly bearish, showing an intact downtrend in the short, medium and long-term with no major support in site prior to 10785. On an hourly chart, the RSI is suggesting oversold conditions and this might push prices slightly higher for the next few hours. However, real buyers will be waiting to see signs of a bullish intraday reversal today before they step back in. For now, any buying action will be short lived and followed by a bearish pullback as the 11460 support is now acting as resistance.
Support: 10785 -
Resistance: 10460 11634