European markets are currently weighed down by a global trade war and political tensions that have resulted in the Eurozone’s weakened economic activity reflected in recent EU ZEW economic sentiment reports. Today, Germany and the Eurozone are set to release PMI reports which should provide further indication on the performance of the region’s economy and impact price action in the German index. Later in the day, ECB holds a policy meeting that is unlikely to see any interest rate moves alongside a deteriorating global outlook, However attention should be drawn to any new economic remarks made by President Mario Draghi in a press conference that will follow.
The Dax index fell 0.18% on Wednesday and is likely to continue its bearish price action during today’s session as it fails to remain above the 20-period MA. While the index ranges, an RSI reading that crosses well below 50 should signal a downside move towards the lower Bollinger band at 11,000. Alternately, if price actions trades above the 20MA , it should test the resistance level at 11150 for further direction.
Support: 11000/ 10890
Resistance: 11150/ 11260