The German index fell 0.63% with caution on the rise as ECB President Draghi reiterates warnings of a decelerating economy in the Eurozone due to global growth concerns stemming from China’s economic slowdown and the uncertainties surrounding Brexit. Investors await the outcome of today’s key parliamentary vote on Brexit, this week’s Fed meeting and the US-China trade talks to further determine market sentiment and the continuation of the DAX index’s rally .
The DAX index retreated off its fresh high at 11320, whilst treading above the 20-period MA. However, failure to maintain the price action above the trend line alongside a break below the support at 11150 could negate the upside move and push the DAX to lower levels. Otherwise the rally should continue to re-test its recent high at 11320.
Support: 11150/ 11000
Resistance: 11330/ 11420