Germany’s blue chip index snapped a three day winning streak as recent trade optimism has been muted by the US trade representative’s cautious remarks regarding the insufficient progress on US-China trade talks. While Sino-US trade relations and Brexit progress remain market drivers, The DAX index may run out of steam should Germany’s economic data continue to disappoint. German CPI is due today and should further clarify the nation’s economic conditions.
The DAX index declined by 0.46% to end at 11487 in yesterday’s session. While bullish momentum has weakened, price would need to break below the support at 11380 to negate the uptrend and move towards lower support levels. Should price manage to sustain above the 50-period MA , it may consolidate before seeing a retest of the resistance at 11540.
Support: 11380/ 11270
Resistance: 11480/ 11540