Dax index trades 0.13% lower at 13,437 after the Real GDP Growth came in at 0.6% in line with forecasts, but in the weakest rate the last six years. German industrial performance turned negative in 2019 and export growth was slow. The Manufacturing output shrank by 3.6% in 2019, due to the country’s car industry.
Earlier today the European Monetary Union Industrial Production (month over month) came in at 0.2% below expectations of 0.3% in November. Also the European Monetary Union Trade Balance came in at €20.7B, below the forecasts of €23.3B in November.
Investors await the release on Thursday of the minutes from the ECB interest rate decision in December that might offer insight into how Christine Lagarde deals with the divided governing council.
Dax index consolidates for second-day after the correction from the recent highs. The technical outlook is bullish for the index as continues above the major daily averages despite the recent pullback.
On the downside, initial support for the index will be met at 13,432 today’s low. Next support zone stands at the 50-day moving average at 12,223. If bears manage to break that level the next hurdle is at 12,949 the low from January 6th.
On the other side, immediate resistance for the Dax is at 13,458 today’s high. More offers might emerge at 13,490 the high from yesterday’s session. The all-time high from January 23rd 2018 at 13,596.89 is the next resistance area.