The DAX Index broke its streak of gains as it declined 0.25% to end at 12282 on Thursday . Losses were led by the financial sector amidst domestic news of failed merger talks between notable German banks. With no major economic releases for the day, Earnings reports out of the German banking and auto sector today should drive price action while Wall Street may impact direction with the release of the US first quarter GDP.
The DAX Index declined to find support at the 20-period MA as the RSI reading exited the overbought territory on Thursday and price failed to sustain above the trend line resistance from January 2018 around 12300. Meanwhile the daily RSI reading remains overbought suggesting there is potential for a deeper pullback below the 20-period MA towards support levels 12200 and 12150. Holding above 12260 would indicate the presence of buying pressure and drive the price to re-test the trend line resistance at 12300.